CNC Machine - Haas VF-2
Asset ID: FA-2019-042 • Serial: 3HE2019042 • Location: Plant Floor - Bay 3
📋 Asset Information
General Information
| Asset Name | CNC Machine - Haas VF-2 |
| Asset ID | FA-2019-042 |
| Category | Machinery & Equipment |
| Sub-category | Manufacturing Equipment |
| Description | Haas VF-2 Vertical Machining Center, 30x16x20 travel |
Identification
| Serial Number | 3HE2019042 |
| Model | VF-2 |
| Manufacturer | Haas Automation |
| Barcode/Tag | MM-EQ-2019-042 |
| Location | Plant Floor - Bay 3 |
Acquisition Details
| Acquisition Date | March 15, 2019 |
| In-Service Date | March 22, 2019 |
| Vendor | Haas Factory Outlet - Chicago |
| PO Number | PO-2019-0342 |
| Invoice Number | INV-HFO-28451 |
Cost Breakdown
| Purchase Price | $118,000 |
| Freight & Delivery | $3,200 |
| Installation | $2,800 |
| Sales Tax | $500 |
| Total Capitalized Cost | $124,500 |
Depreciation Method
| Method | Straight-Line |
| Useful Life | 7 years (84 months) |
| Salvage Value | $12,450 (10%) |
| Depreciable Base | $112,050 |
| Annual Depreciation | $16,007 |
| Monthly Depreciation | $1,334 |
Current Status
| Original Cost | $124,500 |
| Accumulated Depreciation | ($87,150) |
| Net Book Value | $37,350 |
Depreciation Schedule (Book)
| Year | Beginning Balance | Depreciation | Accum. Depreciation | Ending NBV |
|---|---|---|---|---|
| 2019 (partial) | $124,500 | $12,006 | $12,006 | $112,494 |
| 2020 | $112,494 | $16,007 | $28,013 | $96,487 |
| 2021 | $96,487 | $16,007 | $44,020 | $80,480 |
| 2022 | $80,480 | $16,007 | $60,027 | $64,473 |
| 2023 | $64,473 | $16,007 | $76,034 | $48,466 |
| 2024 | $48,466 | $16,007 | $92,041 | $32,459 |
| 2025 (YTD) | $37,350 | $1,334 | $87,150 | $37,350 |
| 2025 (projected) | $37,350 | $16,007 | $103,157 | $21,343 |
| 2026 | $21,343 | $8,893 | $112,050 | $12,450 |
Tax Elections Made
Full cost expensed in year of acquisition
$124,500Not applicable (Sec 179 elected)
$0Not applicable (Sec 179 elected)
$0Tax Depreciation Summary
| Year | Section 179 | Bonus Depr | MACRS | Total Tax Depr | Tax Basis |
|---|---|---|---|---|---|
| 2019 | $124,500 | $0 | $0 | $124,500 | $0 |
| 2020 | $0 | $0 | $0 | $0 | $0 |
| 2021 | $0 | $0 | $0 | $0 | $0 |
| 2022 | $0 | $0 | $0 | $0 | $0 |
| 2023 | $0 | $0 | $0 | $0 | $0 |
| 2024 | $0 | $0 | $0 | $0 | $0 |
| Total | $124,500 | $0 | $0 | $124,500 | $0 |
Estimated Tax Benefit
By electing Section 179, the full cost was deducted in 2019, providing immediate tax savings of approximately $29,880.
Why is there a difference? For book purposes, this asset is depreciated over 7 years using straight-line method. For tax purposes, the entire cost was expensed in 2019 under Section 179. This creates a temporary difference that will reverse as book depreciation continues.
Book vs Tax Comparison
| Year | Book Depreciation | Tax Depreciation | Difference | Cumulative Diff | DTL Impact (24%) |
|---|---|---|---|---|---|
| 2019 | $12,006 | $124,500 | ($112,494) | ($112,494) | ($26,999) |
| 2020 | $16,007 | $0 | $16,007 | ($96,487) | ($23,157) |
| 2021 | $16,007 | $0 | $16,007 | ($80,480) | ($19,315) |
| 2022 | $16,007 | $0 | $16,007 | ($64,473) | ($15,474) |
| 2023 | $16,007 | $0 | $16,007 | ($48,466) | ($11,632) |
| 2024 | $16,007 | $0 | $16,007 | ($32,459) | ($7,790) |
| 2025 (YTD) | $1,334 | $0 | $1,334 | ($37,350) | ($8,964) |
Deferred Tax Liability
Annual preventive maintenance. Spindle bearings inspected, coolant system flushed, way covers replaced.
Replaced failed coolant pump. Unplanned repair - pump seized due to contamination.
Annual preventive maintenance performed. All systems checked, oils changed, alignments verified.
| Account | Account # | Debit | Credit |
|---|---|---|---|
| Depreciation Expense - Machinery | 6200 | $1,334 | |
| Accumulated Depreciation - Machinery | 1550 | $1,334 | |
| Total | $1,334 | $1,334 | |
| Account | Account # | Debit | Credit |
|---|---|---|---|
| Machinery & Equipment | 1500 | $124,500 | |
| Cash | 1000 | $124,500 | |
| Total | $124,500 | $124,500 | |
Asset acquired from Haas Factory Outlet. Invoice #INV-HFO-28451.
If Disposed Today
| Current Book Value | $37,350 |
| Current Tax Basis | $0 |
| Estimated FMV | $45,000 - $55,000 |
| Estimated Book Gain | $7,650 - $17,650 |
| Estimated Tax Gain | $45,000 - $55,000 |
Note: Tax gain is higher because asset has $0 tax basis due to Section 179 election.