Wasp MobileAsset v6 Standard Edition

• 48 powerful management reports
• 1 depreciation method
• 1 PC and 1 mobile license
• Includes Microsoft SQL Express database

Wasp MobileAsset Software Only

Wasp Inventory Control Software Solutions

Wasp MobileAsset Training & Installation

Wasp MobileAsset Hardware

Wasp MobileAsset v6 Pro Edition

• 52 powerful management reports
• 5 depreciation methods
• 5 PC licenses, and 1 mobile license
• Includes Microsoft SQL Express database

Wasp MobileAsset Software Only

Wasp Inventory Control Software Solutions

Wasp MobileAsset Training & Installation

Wasp MobileAsset Hardware

Wasp MobileAsset v6 Enterprise Edition

• All the features of Pro
• Unlimited PC and 5 mobile licenses
• Includes Microsoft SQL Express database (Full version of Microsoft SQL database recommended)

Wasp MobileAsset Software Only

Wasp Inventory Control Software Solutions

Wasp MobileAsset Training & Installation

Wasp MobileAsset Hardware

Asset Tracking Learning Center

Asset tracking deals with "permanent" items that a company uses internally, like computers or equipment. Inventory control usually deals with management of "temporary" goods that a company sells, distributes, or consumes, such as products or supplies.

It is a challenge to keep track of company assets and companies can lose thousands of dollars every year because of a lack of an effective asset tracking system. Money is lost not only on replacing missing assets, but also on the time employees waste searching for those assets.

An efficient asset management system will allow you to have quick access to the location and condition of your assets. It will also let you print asset labels, schedule maintenance for assets, check out assets to people, and generate reports on asset activities.

Depreciation

Depreciation is the decrease in an asset’s value due to wear and tear, deterioration, or obsolescence. Depreciation can be used as an annual income tax deduction that allows you to recover the cost or other basis of certain assets over the time you use them.

Depreciation can be applied to most types of tangible assets (except land), like equipment, machinery, furniture, vehicles, and buildings. Some intangible assets can also be depreciated, such as computer software, copyrights, and patents.

To be depreciable, the asset must:

• Be property you own. You are considered as owning property even if it is subject to a debt.
• Be used in your business or income-producing activity.
• Have a determinable useful life. This means that it must be something that wears out, decays, gets used up, becomes obsolete, or loses its value from natural causes.
• Be expected to last more than one year.

For tax purposes, an asset begins to depreciate when it’s placed in service for use in your trade or business or for the production of income. An asset is placed in service when it is ready and available for a specific use, whether in a business activity, an income-producing activity, a tax-exempt activity, or a personal activity. Even if the asset is not being used, it is in service when it is ready and available for its specific use. If you place an asset in service in a personal activity, you cannot claim depreciation on your taxes.

However, if you change the asset’s service to a business or income-producing activity, then the depreciation from the date of the change can be claimed on your taxes.

You stop depreciating an asset either when you have fully recovered your cost or other basis or when you retire it from service, whichever happens first. You stop depreciating property when you have fully recovered your cost or other basis. You stop depreciating property when you retire it from service, even if you have not fully recovered its cost or other basis. You retire property from service when you permanently withdraw it from use in a trade or business or from use in the production of income because of any of the following events.

• You sell or exchange the property.
• You convert the property to personal use.
• You abandon the property.
• You transfer the property to a supplies or scrap account.
• The property is destroyed.

Generally, if you can depreciate intangible property, you usually use the straight line method of depreciation. However, you can choose to depreciate certain intangible property under the income forecast method.

Straight-Line Method
Straight-line depreciation is the simplest and most commonly used method. It is calculated by subtracting the approximate salvage value of the asset from its purchase or acquisition price and then dividing the total by the number of years (life) the asset can reasonably be expected to benefit the company.

Declining Balance
Declining balance is a common depreciation-calculation system that involves applying the depreciation rate against the non-depreciated balance. Instead of spreading the cost of the asset evenly over its life, this system expenses the asset at a constant rate, which results in declining depreciation charges each successive period. Double Declining Balance and 150% Declining Balance are the most common calculations under this method, but you can also use a custom multiple in the calculation.

Double Declining Balance
With the double declining balance depreciation method, you first calculate the asset’s depreciation with the straight-line method. Next, you determine the percentage of the asset’s original value that is depreciated. That percentage is then doubled, hence the name of the method. The remaining balance is multiplied by that percentage each subsequent year to calculate how much more is depreciated.

Eventually, the depreciation amount will be less than what the straight-line method would use. At that point, the double declining balance method would be replaced with the straight-line method.

150% Declining Balance
This method uses 150% of the straight-line percentage for the first year. Each ensuing year, that same percentage is then multiplied by the remaining balance to determine the depreciation amount.

Sum of the Years Digits
The Sum of the Years Digits is a depreciation method that allocates the cost of an asset over its useful life. A fraction is calculated for each year that is used to find the amount of depreciation. The numerator (top figure) of the fraction is the number of years left of the asset’s useful life. The denominator (bottom figure) is the sum of the years’ digits for the useful life. This calculated by either adding each digit from 1 up to the number of years of useful life (1+2+3…etc) or by using this formula:

So, the calculation for the amount of depreciation for each would be:

Comparison of Depreciation Methods
This illustration will show how each depreciation method would work on the same asset. The example uses an asset that has an original price of $1000, a salvage value of $100, and a useful life of 5 years.