Cost increasing expenses for the fixed assets can be expenses made to increase the usage longevity or can be function augmenter expenses that do not increase the usage life but their function and utility.
Usage Longevity Expenses
The longevity expenses for usage are covered by the beginning of the activation year and in the duration of the fixed asset that they have been applied to.
Example:
Fixed Asset Usage Longevity Expenses
Buying Year | Buying Value | Depreciation Rate | Accumulated Depreciation | Net Book Value |
(%20) |
1995 | 6.000,00 | 1.200,00 | 1.200,00 | 4.800,00 |
1996 | 6.000,00 | 1.200,00 | 2.400,00 | 3.600,00 |
1997 | 6.000,00 | 1.200,00 | 3.600,00 | 2.400,00 |
800,00 | 160,00 | 160,00 | 640,00 | |
1998 | 6.000,00 | 1.200,00 | 4.800,00 | 1.200,00 |
800,00 | 160,00 | 320,00 | 480,00 | |
1999 | 6.000,00 | -- | 5.999,99 | 0,01 |
800,00 | 160,00 | 480,00 | 320,00 | |
2000 | 6.000,00 | -- | -- | 0,01 |
800,00 | 160,00 | 640,00 | 160,00 | |
2001 | 6.000,00 | -- | -- | 0,01 |
800,00 | 160,00 | 800,00 | 0,00 |