Dividing an asset

Alerts and notices

Assets can be divided as follows:

  • Create a new asset with a specific dollar amount. Example.
    If you start with an asset that cost $32,141.32, the application can create an asset with a cost of $12,141.32, leaving $20,000 in the original asset. The application will also divide the prior depreciation and current depreciation. Those steps can be repeated, for example, to create a third asset with a $5,000 tax cost basis, resulting in three assets with bases of $12,141.32, $15,000, and $5,000, and each with a proportional amount of prior depreciation and current depreciation.
  • Create a new asset with a specific percentage of the original asset's value. Examples.
    • If you create a new asset with 20 percent of the original cost, prior depreciation, and current depreciation, the original asset will be modified to contain 80 percent of the original cost, prior depreciation, and current depreciation.
    • If you start with an asset that consisted of three desks, the application can create an asset for one of the desks and leave the other two desks in the original asset. The application will also divide the prior depreciation and current depreciation.
  • Create any number of net assets with equal portions of the original asset. Example.
    An asset that represents the purchase of 10 cattle can be divided into 10 assets, each with one-tenth of the original cost, prior depreciation, and current depreciation.

To divide an asset, perform the following steps.

  1. Open the Asset List window for an activity.
  2. Highlight the asset you want to divide.
  3. Choose Edit > Divide.
  4. In the Divide Asset dialog, specify whether you want to divide the asset based on cost basis, units, percentage, or multiple units.
  5. Do one of the following tasks.
    • If you click the Tax cost option, enter the amount of tax cost you want to remove from the asset in the Tax cost to remove field and enter a name for the new asset in the New asset description field. The amount that you enter will be removed from all treatments.
    • If you click the Percentage option, enter the amount you want to remove from the asset in the Portion to remove field and enter a name for the new asset in the New asset description field.
    • If you click the Units option, enter the total number of units in the existing asset in the Total units in existing asset field, enter the amount you want to remove from the asset in the Units to remove field, and enter a name for the new asset in the New asset description field.
    • If you click the Multiple units option, enter the number of equal units into which the current asset will be divided in the Divide and adjust current asset into this number of equal units field.
  6. Click the Divide button.
  7. If you chose to divide by tax cost, percentage, or units, do one of the following tasks in the Confirm New Asset Number dialog.
    • Click OK to confirm the number that was automatically assigned to the new asset.
    • Enter a different number of your choosing, then click OK.

The application creates new assets based on the information you entered and modifies the original asset as required by the division.