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arkvalleyinfo
October 16, 2018
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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?

  • October 16, 2018
  • 1 reply
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For example, I paid $10,000 in 2016 for a brand new machine that was discounted from $50,000.

I would like to be able to show potential investors that the assets I have on hand are worth more than I paid and have not yet depreciated in value.

I have a fixed asset account set up for the machine, but it only records the transaction amount of $10,000.
Best answer by john-pero
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.

1 reply

john-pero
john-peroAnswer
October 16, 2018
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.
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    arkvalleyinfoAuthor
    October 16, 2018
    I was afraid of that. Thanks!
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