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Big Ticket Purchases & Depreciation:
Unique & Complex Transactions
Approximately 57 minutes:
- What are Fixed Assets and how do you recognize them?
- Typical cost and lifetime
- How fixed asset purchases impact your Balance Sheet and Profit & Loss reports
- Examples of fixed assets
- What kinds of acquisitions are reflected in “Other Assets”?
- Tax laws related to fixed assets and “other assets”
- The most common question when it comes to big ticket purchases…
- How to enter a straight-out purchase of a fixed (or ‘other’) asset
- Creating a Fixed Asset Item
- What to do when there are multiple purchases for a single asset
- Why use Fixed Asset Items?
- Possible drawbacks to using Fixed Asset Items
- Alternative approaches
- Other notes about Fixed Asset Items
- How to enter a Fixed Asset purchased via down payment and loan
- Example – vehicle purchase
- How to enter down-payments
- How to enter current costs and loans payable
- Getting the right paperwork – what to ask for
- What you – or your accountant – needs in order to create an amortization schedule
- Making entries for trade-ins
- Selling or disposing of an existing Fixed Asset
- Why it’s important to keep Fixed Asset records current and accurate
- Acquiring land or other property for re-sale
- Similarities to – and differences from – fixed asset purchases
- What you need to have on hand in order to make the right entry
- Example of entry for a land or property purchased for re-sale
- Depreciation and amortization concepts
- How does fixed asset cost get recognized?
- The difference between depreciation cost and accumulated depreciation
- Illustration of straight line depreciation and accumulated depreciation
- How the IRS impacts what you can take as depreciation cost each year
- When should depreciation entries be made?
- Note: Supplementary info on depreciation entries included in
Finalizing the Year, What Your Tax Preparer Needs, and Coordinating Results (4020/Level 2)
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Covering topics like:
Job-Costing, Construction Accounting, and Profit-Building