ACCO 340 Lecture Notes - Lecture 4: Luxury Vehicle, New South Wales 44 Class Locomotive, Software
24 Mar 2018
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General method (applied most of the time) (pg. 59) Each of 52 class of asset goes into a group. Rate tells us how much depreciation we can take in year. There are exceptions for specific assets with their own methods. Permisive deduction: you don"t need to take all of it, can take inventory, investments, and personal use property(cid:524) since they"re already deducted on income statement so the govt. doesn"t allow you anything from 0- 100% Must own asset @ end of year to take cca (general rule not including exceptions) Cannot take cca on non-depreciable assets (land, receivables, Land is the issue b/c you must allocate cca to building on land to deduct it twice. Cca can only be deducted on capital asset. Capital asset: cost incurred to make useful life of asset longer take. Current expenditure: just maintains life cannot take cca. If balance goes negative then the balance recapture add it to income.
