Basic question on fixed assets depreciation + impairment


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Lets say premises cost $100,000.
Straight line depreciation @ 2% = ($2,000/year)
Current accumulated depreciated is $16,000

Impairment loss $20,000.

my question is will impairment loss affect my depreciate amount next year?
 
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Counterofbeans

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Yes, it will most certainly affect your depreciation in the following year. Just take your net, adjusted carrying balance, divide by the remaining useful life, re-compute deprecation expense/month (or year) & call it a day
 
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