Accumulated Amortization
Large dollar items like Land, Building, Equipment and Vehicles can not be expensed in one year, but must be amortized (depreciated) over the life of the asset. This section deals expensing of the "used up" portion of a Captial Asset.
This level includes:
- Part Year Amortization
- Full Year Amortization
- Recapture of Amortization on Disposal
The exercises are the same, but with different amounts.
Betterments are improvements made to a Captial Asset that must be added to the value of the asset and amortized. The following exercise will help you understand how to deal with betterments.