Free Asset Replacement Under Warranty

USA Discussion in 'Technical Queries' started by Dudley, Jan 30, 2019.

  1. Dudley


    Jan 30, 2019
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    We have an asset on the books which has a few years of depreciation left, and it is now broken and is being replaced for free under warranty from the vendor. It seems so simple but I'm having trouble with the solution. I'm thinking we dispose of the old asset, but how would the new asset make its way onto the books since it's for free? Or would the new unit just take on the NBV of the old asset? Any advice would be appreciated.
    Dudley, Jan 30, 2019
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  2. Dudley

    kirby VIP Member

    May 12, 2011
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    New unit takes nbv of old asset
    kirby, Jan 31, 2019
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