Should the purchase of an item to be rented out be categorised to operating expenses or CoGS? The business' main income comes from renting out these products. The item in question is worth around £100, and will be kept for many years, so could be considered an asset, however it tends to keep all or most of its value, so I don't know how to account for depreciation in that case?
15th May 2019
How to categorise the purchase of a rental item?
Should the purchase of a rental item be categorised to operating expenses or CoGS?
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