Book Keeping Task/Depreciation

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Fixed Assets

Any purchase of $500 or over for an asset that will not be used up in the year is placed in a Fixed Asset account. An account is created for the category, if one does not already exist.

If the individual items in a single purchase are less than $500, but the total purchase is $500 or over, they will be treated as a fixed asset if the items are to be used together. For instance, if 3 GPS were to be purchased at $300 each, they would be considered a fixed asset. But a single GPS at $300 would not.

Amortization Expense

PCSAR follows Canada Revenue Agency’s Classes of Depreciable Property guidelines when depreciating assets. Assets are depreciated at the specified percentage each year. 50% of the stated rate is used for assets that are purchased within the financial year. Depreciation are done on the declining balance.

As of the 2015-08-31 fiscal year end, PCSAR classifies its fixed assets as:

  • Class 8 (20%)
    • The majority of PCSAR's assets
    • "certain property that is not included in another class", "other equipment you use in business."
    • Radios, Satellite Phones, inReach ("electronic communications equipment")
    • Trailers: because they are not passenger vehicles and they are not motorized
    • Storage Cabinet: "furniture"
  • Computer: Class 46 (30%)
  • Sierra Command Post: Class 10 (30%)
    • Because initial cost was not over $30K, cannot be Class 10.1
  • Pickup Truck: Class 10 (30%)
  • Equipment Shed: Class 6 (10%)
    • "made of ... corrugated metal" and "the building has no footings or other base supports below ground level"
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