Use new asset and debt records to review cost allocation, disposal and financing. Choose the method before calculating the amount. Cost less salvage belongs in straight-line and units-of-production calculations; DDB uses beginning book value and an accelerated rate, subject to the salvage floor. An idle year affects output-based depreciation differently from time-based depreciation.
Keep disposal gains separate from the cash proceeds. Update depreciation before comparing proceeds with book value. For debt, distinguish principal reduction from interest expense and accrue unpaid interest when the reporting date comes first. These tasks combine only methods already practiced. Each source describes a fictional business event, so use its dates and conventions rather than importing an unstated tax rule.