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Buy-Out of a Leased Asset
QuickBooks Premier: 2009: Accountant
6/11/09 12:36 PM, Viewed by asker 6/12/09 8:55 AM
Total Views: 570
6/11/09 12:36 PM, Viewed by asker 6/12/09 8:55 AM
Total Views: 570
Do you book an asset that was leased and bought out at the end of the lease as a fixed asset when this buy out occurs and then begin depreciating it? If so, how do you determine what life you depreciate this at from here going forward?
All Replies: Answers (1)
Rating + 2
Answer
6/11/09 5:40 PM
Assuming that it was properly treated as a true lease originally, yes. Depreciable life is as if you'd bought the asset without having previously leased it.
Hey, we get sig files now! Cool - I wonder what I'll put here? Ah, I know: RTFM.
