# P3 defect 13, named regression 3
# (an_asset_bought_before_it_is_in_service_is_on_the_register_from_acquisition).
id = "assets-acquired-before-in-service"
title = "An asset is on the register from acquisition and depreciates from its in-service date"
rule = "Depreciation starts on the day the asset is placed in service; the asset is on the register (and the books carry its cost) from the day the company acquired it, the date of the entry that put it on the books."
status = "CHOICE"
sources = [
  "ASC 360-10-35-4 (cost allocated over the periods the asset serves)",
  "IRS Pub. 946 (2025), Placed in Service: 'ready and available for a specific use' (for tax depreciation, the CPA's)",
  "wanderbooks docs/spec/rules.md B-15, B-24",
  "DECISION (owner, 2026-10-20; wanderbooks plan/served.md P3, \"Settled in design\"): an asset's acquired date comes from the entry it is linked to (rules.md B-15 rule 7)",
]
tags = ["fixed-assets", "dates"]

[setup]
currency = "USD"
fiscal_year_start = "01-01"
basis = "accrual"
rounding = "half-away-from-zero"

[[setup.accounts]]
code = "1000"
name = "Bank"
type = "asset"

[[setup.accounts]]
code = "1500"
name = "Equipment"
type = "asset"

[[setup.accounts]]
code = "1510"
name = "Accumulated Depreciation"
type = "asset"

[[setup.accounts]]
code = "6200"
name = "Depreciation Expense"
type = "expense"

# A kiln bought 2026-03-10 for 3,000.00, placed in service 2026-04-01, 36
# months, no salvage.
[[setup.assets]]
id = "kiln"
description = "Kiln"
cost = "3000.00"
salvage = "0.00"
life_months = 36
in_service = "2026-04-01"
method = "straight_line"
cost_account = "1500"
accumulated_account = "1510"
expense_account = "6200"
acquired_by = 1

[[events]]
date = "2026-03-10"
description = "Kiln bought"
lines = [
  { account = "1500", side = "debit", amount = "3000.00" },
  { account = "1000", side = "credit", amount = "3000.00" },
]

# Hand check: on the register from Mar 10 (its entry's date), nothing
# accrued before Apr 1 (a March charge from the purchase date would have
# been 3,000.00 / 36 x 22/31 = 59.14: none is due), and the register
# carries the cost the books do.
[[expect]]
query = "register_row"
asset = "kiln"
as_of = "2026-03-31"
values = { acquired = "2026-03-10", in_service = "2026-04-01", accumulated_scheduled = "0.00", accumulated_posted = "0.00", book_value = "3000.00" }

[[expect]]
query = "register_totals"
as_of = "2026-03-31"
values = { total_cost = "3000.00", unregistered_cost = "0.00" }

# April: 3,000.00 / 36 = 83.333... -> 83.33.
[[expect]]
query = "depreciation_schedule"
asset = "kiln"
as_of = "2026-04-30"
values = { "2026-03" = "0.00", "2026-04" = "83.33" }