Ask Experts Questions for FREE Help !
Ask
    dmongiardo's Avatar
    dmongiardo Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 4, 2008, 01:46 PM
    Depreciation expense of purchased vehicles
    We are purchasing our vehicles rather than leasing them this year. Under the lease we were debiting vehicle expense to each individual dept that had a vehicle assigned to them. Now that we are purchasing them - can you still charge vechicle expense or do I have to debit depreciation expense?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
    		  
    #2

    Jun 4, 2008, 07:48 PM
    You're purchasing an asset and it has to be capitalized. i.e. you're debiting an asset.

    If you're asking just about the periodic charging to an expense, it's depreciation and it's done as an adjusting entry. And you have to pick a method to use for it. Do you have an accountant who has been doing your other depreciation? If so, I would call that person, give them the info, and let you know how much to depreciate each month/year. They would want that info anyway.

    If you have your expenses divided up by department, you can still create a separate depreciation account for each of the departments.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Depreciation expense [ 2 Answers ]

The amount of depreciation expense for a fixed asset costing $95,000. with an estimated residual value of $5,000. And a useful life of 5 years or 20,000. Operating hours, is $21,375 by the units of production method during a period when the asset was used for 4,500 hours I need help to determine...

Depreciation expense [ 1 Answers ]

Steel is purchased on July 1 of the current fiscal year for $180,000. It is expected to have a useful life of 4 years, or 20,000 operating hours, and a residual value of $15,000. Compute the depreciation for the last six months of the current fiscal year ending December 31 by each of the following...

Are products purchased for Product Reviews considered a business expense? [ 1 Answers ]

I own an LLC that creates websites. I want to create a site that does product reviews. Can I write off the products I review (tech equipment, game consoles, purses, etc) as business expense?

Depreciation Expense [ 1 Answers ]

Is the entry to record depreciation expense is decrease a long term asset and increases a contra long term asset?

View more questions Search