Free Asset Replacement Under Warranty

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

  1. Dudley

    Dudley

    Joined:
    Jan 30, 2019
    Messages:
    1
    Likes Received:
    0
    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
    #1
    1. Advertisements

  2. Dudley

    kirby VIP Member

    Joined:
    May 12, 2011
    Messages:
    1,446
    Likes Received:
    200
    New unit takes nbv of old asset
     
    kirby, Jan 31, 2019
    #2
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.