If I purchase a fixed asset (Equipment) for less than market value, can I show the market value in QB & what GL account is recommended?
Sorry, but the cost principle of accounting prohibits recording a higher value for an asset beyond that for which it is acquired or improved, even if fair market or appraised value rises.
If I purchase a fixed asset (Equipment) for less than market value, can I show the market value in QB & what GL account is recommended?
Sorry, but the cost principle of accounting prohibits recording a higher value for an asset beyond that for which it is acquired or improved, even if fair market or appraised value rises.
If I purchase a fixed asset (Equipment) for less than market value, can I show the market value in QB & what GL account is recommended?
Now that does not mean you cannot present an appraisal of your fixed assets to secure a loan or entice investors as loan collateral and appraised value may have nothing to do with book value. Consider the case of real property that goes up in value such that you can refinance. You could have property (or equipment) that has a book value of zero because of accumulated depreciation yet you could get a loan against appraised value.
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