Transactions > Transaction examples - Capital Assets / Assets > Selling a portion of a capital asset
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Selling a portion of a capital asset
A capital asset is defined as any long-lived tangible or intangible asset that contributes to the operation of the business throughout its service life. You can split a capital asset out of a parent asset, if you want to sell a portion of your capital asset.
In this example, a combine/header combination is owned and valued at $500,000. The header is then sold for $100,000.
- Go to Setup and click Capital Assets. In the Capital Assets dialogue box, select the appropriate asset and click Split to open the Capital Asset Split dialogue box.
- In the Capital Asset Split dialogue box, the information for the original asset is displayed on the right side. Click Save.
- The new asset has automatically been inserted into the asset list in the Capital Asset dialogue box.
- As well, the capital cost of the original asset has been reduced to reflect the capital asset split.
- In the transaction entry screen, you can now sell the split asset.
Last updated on August 31, 2016 by FCC AgExpert