I received a partial credit note for an asset which was bought in 2019 and it has been depreciating since. What do you do in this case? 2019 and 2020 is closed so this would affect 2021 depreciation only. What do you do in this case? I would like to depreciate it based on the new amount and not change the prior year's figures.
I book depreciation monthly S/L basis for 7 years. Credit note = $549.28, Original asset cost = $7,636.78, New Asset Cost = (7,636.78-549.28) = $7,087.50.
Thank you
