Support CenterLess accumulated depreciation on Pg. 4
According to accounting laws, land is not a depreciable asset. Land is therefore subject to only current depreciation and not accumulated depreciation or depreciation expense. For example, if the current land was expensed this year and sold this year, the amount of the sale would, in SureFire, be used to calculate the deduction amount. So, any amount of land that is accounted for and sold within the same year will be deducted.
If a company sells land that it was holding for future use, the company will do the following to record the sale:
Debit cash for the amount it receives.
Credit land for the amount in the general ledger account that applies to the land being sold.
Record the difference as a gain or loss on the sale of land.
Note: Since land does not depreciate, there is no depreciation expense to be recorded up to the date of the sale, nor is there any accumulated depreciation to be removed from the books of the company.
Additional Information
Para obtener la versin en espaol de este artculo de Knowledge Base, haga clic aqu:En la pgina 4, en la lnea 10b, columna C - Less accumulated depreciation - y la lnea 12, columna D - Land (net amortization) - no calculan correctamente en una declaracin de impuestos 1120S usando SureFire
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