New corporate book with revised cost figures, but must maintain original values in tax books.
We are considering revaluing all assets in our corporate book at their
current net book value. For example, assume the following:
Asset #: 12345
DPIS: 1/1/07
Orig. cost: $10,000
Remaining life as of 12/31/10: 2 years
Accum. Depr. $6,000
NBV: $4,000
Thus, in the new corporate set of books, as of 1/1/11, the original cost should be $4,000 with an A/D of $0 and a remaining life of 2 years. But, we need the value of this asset in the tax books to remain the same (same cost, same life, same A/D).
If we create a new corporate tax book, but need to maintain existing tax books, does this mean we need to maintain both original corporate as well as new corporate on an ongoing basis? For example, would new additions, or transfers/adjustments to existing assets be required in both corporate books?
Asset #: 12345
DPIS: 1/1/07
Orig. cost: $10,000
Remaining life as of 12/31/10: 2 years
Accum. Depr. $6,000
NBV: $4,000
Thus, in the new corporate set of books, as of 1/1/11, the original cost should be $4,000 with an A/D of $0 and a remaining life of 2 years. But, we need the value of this asset in the tax books to remain the same (same cost, same life, same A/D).
If we create a new corporate tax book, but need to maintain existing tax books, does this mean we need to maintain both original corporate as well as new corporate on an ongoing basis? For example, would new additions, or transfers/adjustments to existing assets be required in both corporate books?
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