T
The Tax Therapist
My client purchased some very old films for $50,000. He
will be using them in his business. It appears to me that
we use either straight line depreciation or a units of
production type depreciation. However it seems in either
case, salvage value needs to be considered. My fear is the
salvage value of these very old movies will be the same as
the cost and therefore there isnothing to depreciate.
will be using them in his business. It appears to me that
we use either straight line depreciation or a units of
production type depreciation. However it seems in either
case, salvage value needs to be considered. My fear is the
salvage value of these very old movies will be the same as
the cost and therefore there isnothing to depreciate.