| 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 ERP 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 ERP 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. ERP LN gives the asset a status of Disposed in its ADR book. |