USA How to account for instrument placed with cusotmers


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Jan 13, 2022
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Hi all,
Quick questions. Our business model is to place a piece of equipment (value c10k) with customers for free. The customer uses this equipment to run scans and each scan will generate an order for a consumable which we will ship to them.
Obviously, the cogs for the consumable are easy. But how do I account for the scanner?
We retain legal ownership so my sense is just capex with a dep/amort over its life. But does that dep/amort charge belong in cogs?
What's the correct treatment and standard
thx
 
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