toong
Joined 15 years ago
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Member since
Apr 7
Joined 15 years ago
Now each year your book loses 1/5th of its value, due to wear and tear (4$ disappearing from your assets-account), this is countered by your depreciation-account (4$ tax write off, every year!)
After 5 years, it is worth $0 according to your books, but you manage to sell it again for $10: your bank account gets debited for $10, while your capital-gains-account gets credited for $10
I might tone it down just a bit to "Somewhat unlikely to happen. Today."