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I have a client who is just getting into the dog breeding business. They purchased a dog and "breeding rights" at about $3K each . How do I account for both of these costs? Would the breeding rights fall under any class of CCA? Any guidance would be appreciated.
Hi @Sue311
it is great that you have reached out to the community to seek some assistance.
Because this transaction falls into accounting territory, it's best to reach out to your accountant to make sure all the appropriate accounts are adjusted as they are trained on how to do this. If you don't have an accountant no need to worry, we can help. You can go to My Accountant>Find a pro to help to find an accountant in your area.
Hi Sue,
You can add the dog and the breeding right separately on the balance sheet as long term assets. During the year-end let the accountant know about it and let them decide.
Thank you
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