Disposing Vintage/Group Accounts

Assets 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.