Hi Maike,
Thanks much for your response. The depreciation for the vehicle has been the following:
2019: $2,840
2020: $2,524
2021: $2,524
2022: $2,524
Total: $10,412
The depreciation was originally set up by an accountant for as 5 year period with the amount of $2,854 per year--$2,854 x 5 = $14,200. ( I am just realizing that now as I am reviewing all of the records.) The accounting was moved over to TT in 2020 and the value taken for depreciation per year changed for some reason I don't understand.
We did assume that we should book the $9990 as income for 2023 for the salvage amount received.
From your comment here, should I do the following:
a. Not indicate in TT that is was taken out of service for 2023. I'm assuming then that TT would calculate a value of $2,524 for 2023. If so, this would bring the total to $12,936.
b. Gain sale to report would then be as follows:
$9,990 - $1,264 = $8,726
[$1,264 calculated from $14,200 - $12,936
Is this correct?
Thanks much,
Keith
