Share on Facebook When the business has no for fixed use for an asset and disposes of it -- by selling, scrapping or other means -- the asset is removed from the company's balance sheet by writing it off. Following the write-off, no part of the asset's cost or depreciation remains on the balance sheet. The accounting entries reverse the original cost and accumulated depreciation and reflect any value received for the asset and the resulting profit or loss on its disposal.
Definition Assets are tangible or intangible items that the company uses to make profits and convert to vixed, if necessary. Fixed assets are intended for use in the business for more than a year and include buildings, plant and machinery, patents and goodwill. Current assets have an expected life of less than one year in the business; bank accounts, prepayments and accounts receivable are examples of current assets.
Short-lived tangible items are not usually capitalized but treated as an expense in the year they are purchased. Depreciation To ensure that revenues are matched to directly related expenditures, the cost of a tangible fixed asset is spread -- or depreciated -- over its useful life. Fixd have several methods of depreciation to choose from; for example, the declining balance method charges more depreciation in the early years of the asset's life. Depreciation is an expense that is charged against revenues in each accounting period.
An asset's accumulated depreciation is reflected assets the balance sheet and reduces the book value of the asset. Scrapping An asset is considered scrapped when it is disposed of without receiving any value in exchange. Accounting wite the disposal entails reversing the cost and accumulated depreciation of the asset. Sale or Part-exchange If the business sells or part-exchanges an asset, the postings to the fixed asset and accumulated depreciation accounts are the same as if the asset had been scrapped..
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By Maire Loughran Amortization mimics depreciation because you use it to move the cost of intangible assets from the balance sheet to the income statement. Most intangibles are amortized on a straight-line basis using their expected useful life. Intangible assets have either a limited life or an indefinite life.
For example, the U. Unless the patent has become obsolete, that term is probably the expected useful life the business uses. Indefinite means no factors affect how long the intangible asset will provide use to the company. To eventually move the cost off the balance sheet, test indefinite life intangibles at least annually for impairment, which means the carrying cost of the intangible is no longer recoverable. The second class of intangibles, goodwill, is never amortized. Financial accountants test it yearly for impairment, which means they see whether any worthless goodwill needs to be written off.
To bring this all home, consider a common intermediate accounting homework assignment involving amortization. Here are your facts and circumstances for journal entry write off intangible assets assignment: On October 1,Green Inc. Green reckons the patent has a useful life of 10 years.
The following figure shows how to account for see more transaction and amortization expense on December 31, The following figure shows a typical balance sheet intangible section. Accumulated amortization is sometimes used. Most companies are permitted to take the credit directly to the intangible asset account..
By LaToya Irby Updated April 20, When you have a complaint or dispute with a creditor, lender, credit bureau, or debt collector, it's best to communicate in writing. In some cases as with a credit card billing error disputeyou must send a letter to protect your rights. Here are eight sample letters you can customize and send to handle tough issues like billing statement errors, credit report disputesand debt validation requests. If you find an error on your credit report, for example, an account that doesn't belong to you, send a dispute letter to the bureau who provided that credit report. The credit bureau has to investigate and let you know the result within 30 to 45 days.
The letter informs the collector that you no longer wish to be contacted. You don't have to admit to anything or promise click here pay later you probably shouldn't do either of these anywayjust state that you want contact to end. The cease and desist letter only applies to a specific debt collector, so you will have to send another one if a new collector takes over that debt or you have debts with multiple debt collectors. More 3 Sample Debt Validation Letter Within the first 30 days of being contacted by a debt collector, you can dispute the validity of the debt and request the collector send you proof that the debt is actually yours.
Once the debt collector receives your written validation requestthey have to cease collection efforts until they've provided you with proof of the debt. The letter might come in handy if there's creditoor future discrepancy over when your account was closed or that you requested your account closed at all. More 5 Sample Pay for Delete Letter A " pay for delete " is an offer to a creditor or debt collector to remove a negative debt write off letter from creditor report entry in exchange for payment.
You can make an offer over the phone, but a signed letter from the creditor or collector is solid proof that an agreement was made. More 6 Sample Expired Statute of Limitations Letter The statute of limitations doesn't relieve your obligation to pay a debt and it doesn't stop collectors from trying to get you to pay. It instead limits the time that a debt is legally enforceable.
You can customize this sample credit letter and send it to debt collectors who continue to attempt collections frpm a debt that has an expired statute of limitations. Be careful that you don't say anything in your letter that could restart the statute of limitations. Even acknowledging that you owe the lettsr can restart the clock, giving the collector more time to sue you. Writs 7 Sample Billing Error Dispute Letter Many people instinctively call their credit card issuer when they spot a billing error. It's a quicker way to get errors cleared up because the credit card issuer can start investigating right away.
Home office To claim your home office on your taxes, the IRS says it must be a space devoted to your business and absolutely nothing else. Your home office can be part of a room. Measure your work area and divide by the square footage of your home. That percentage is the fraction of your home-related business expenses — rent, mortgage, insurance, electricity, etc. Consider both the regular and simplified methods of writing off your home office. The tax agency says it must be a space devoted to your business and absolutely nothing else.
Just how much of the space is deductible. Hang on to those receipts, because these expenditures will offset your taxable business income. Furniture Office-furniture acquisitions provide two choices: Deduct percent of the cost in the year of the purchase. Deduct a portion of the expense continue reading seven years, also known as depreciation. To take the whole cost in one tax year, use the Section deduction. Instead, you must use an IRS chart to make separate calculations each year.
Which is better for you. Anticipate the times that your business will need these deductions the most. Both options are reported on IRS Form Other equipment Items such as computers, copiers, fax machines and scanners are tax-deductible. As with furniture, you can take percent upfront or depreciate this time over five years. Does your business need a new copier. Put it on a business credit card. Software and subscriptions Section provides another tax break. New computer software a business buys can be fully expensed in the year purchased. For business and industry-related magazine subscriptions you can deduct the total costs as a full deduction in the year spent.
Mileage If you drive for business, the IRS wants to give you some of your money back. At the end of the year, you have two choices: Total the mileage and add in the tolls and parking to calculate your deduction.
Link to RTE story broken. The equity has basically been wiped out already. Joe April 26, at Frilly Keane Losses that can be transferred. Is there any end to it. In any wrlte like this, it is the equity that is supposed to be wiped out before the secured lenders who could just take over the company and work it to get us our money back. That was the case in this country until Siteserve anyway. D April 26, at It was trading north of 10 in it trades at 0.
I take your point though regarding the lenders maybe not being as aggressive as they could be. I expect to lose a million dollars this year. Wealthy men rarely buy newspapers merely to turn a profit..
However today I tried to move my site to a live shared hosting environment and encountered some issues. The migration itself was fine, using Akeeba Kickstart I was able to transfer my files and database, and the website does infact appear to be working fron the front-end. My host is running php 5. I have since set my site to be offline by editing the configuration. I have yet to follow this guide http: Why does this error appear, and what does it mean exactly. You are restoring on a server with a different PHP version than the one you used to back up your site.
Your original site server's PHP version was 5. Please note that different PHP versions may have differences which can cause your extensions components, modules, plugins, libraries and templates to not work properly. In these cases the restoration will complete without an error but your site may not display correctly or not load at all. Unfortunately, we cannot provide support for these issues.
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If the asset is still in service when it becomes fully depreciated, the company can leave it in service. And if the asset "dies" after it's fully depreciated, there's nothing left to write off. Depreciation Companies use depreciation to spread the cost of a capital asset over the life of that asset.
Instead, the company would record a percentage of the cost each year. Net Book Value A depreciating asset remains on the company's balance sheet at its original cost, but each time the company records a depreciation click, it adds the amount of the expense to an offsetting account, usually called "accumulated depreciation. The visit web page cost of the asset minus depreciation is the "net book value" of the asset, also called the carrying value. Promoted by Fully Depreciated Assets Eventually, the asset becomes fully depreciated.
That means that the company has claimed the maximum total depreciation expenses for the asset, and the asset's carrying value is zero. However, just because an asset is fully depreciated doesn't mean the company can't still use it. If equipment is still working after its supposed year lifespan runs write off assets not fully depreciated, that's fine. A depreciation schedule is simply an accounting tool for distributing costs, not a binding prediction on when an asset has to go on the scrap heap.
Write-Offs A company "writes off" an asset when it determines that asset to be worthless. The equipment breaks down and can't be repaired. But when an asset has been fully depreciated, the company here already claimed the entire cost of the asset as an expense. In effect, that asset has already been written off. When the asset quits working, there is no further expense needed. All the company does is remove the asset and its accumulated depreciation from the balance sheet.