Adding Assets from Acquisition to tax book
I work for Company A which was formed in 2010. We recently acquired company B and I have been told that for the tax book for assets I need to keep the original asset cost and any accumulated depreciation that was taken prior to acquisition. I used the tax interface to accomplish this for most of the assets however, they have a number of assets that were placed in service prior to 1/1/2010. I cannot seem to get the depreciation to work out correctly for those assets. As an example:
Asset 123 was placed in service 3/31/08 at a cost of 1320.30 using 150DB and a life of 15 years. The depreciation reserve at 12/31/2017 was 1107.54 and the depreciation for 2018 from 1/1 to date of acquisition was 6.50.