| | Disposing Vintage/Group AccountsAssets in a vintage
account are subject to normal, ordinary, or extraordinary disposal. Assets in a
MACRS group account must be disposed of through extraordinary ADR disposal. You
dispose of assets in a vintage account, by using the same steps as you do for
other assets, but you have an additional option for ADR assets. For assets in a
vintage/group account, you must select the ADR disposal type in addition to
your other disposal criteria. The ADR disposals types are as follows: - Ordinary ADR
disposal, where LN gives
the asset a status of Disposed in its ADR book. However, the asset remains in
the vintage/group account and continues to depreciate until all assets in the
account have been either extraordinarily disposed, or fully depreciated.
- Extraordinary ADR disposal, where LN removes the asset from the vintage account and subtracts the asset's total
cost, accumulated depreciation, year-to-date depreciation, and salvage value
from the vintage/group account. LN gives the asset a status of Disposed in its ADR book.
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