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Depreciation of Capital Lease Asset

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Hi All

 

We are trying to set up some capital leases that will have a value left over at the end of the assets depreciable life.Example- The asset is capitalized for $10,000 and at the end of the life we can purchase it for $10 so the asset should only depreciate $9990 not the full $10,000.

 

I could find two methods-

 

a) Entering Scrap Value %

 

b) Through manual depreciation

 

I m not sure if it is going to work for capital lease asset that has purchase price attached to it?

 

Regards

 

Pankaj


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