How to track depreciation?

marc at osmium.mv.net marc at osmium.mv.net
Tue Sep 13 12:27:46 EDT 2005


Hello -

I own a car, which when I purchased it, I transferred the monies used to 
pay for it from my checking account to an asset account "car". Several 
years have past, and now it is time to sell the car. The amount I will 
receive for the car will be significantly less than what I paid. My 
questions are:

1) Should I have been tracking depreciation on some regular basis over
    the past years, to properly reflect its current value in net-worth
    statements? If so, how is that done?

2) Now that the car will be sold, how should I account for the money that
    I receive (I presume it isn't income), and how do I account for the
    difference of sold-value versus asset value on the books?

I presume that the above questions are general, in that they are true for 
all assets that are tracked and/or later sold (at profit or loss).

Thanks in advance - Marc


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