Fixed asset

[Velayutham Panchatcharam]

Please clarify, purchase of Walkie Talkie for communication purpose for factory is fixed asset or expense

AI Summary

Debate on Classifying Walkie-Talkie Purchase: Fixed Asset vs. Expense Under $5,000 Company Policy and Tax Implications A query was raised about whether the purchase of a walkie-talkie for factory communication should be classified as a fixed asset or an expense. One response suggested it could be a fixed asset if used over several years, though this might be disputed by tax authorities. Another pointed out that company policy capitalizes assets only above 5,000, treating others as expenses. It was also noted that if the cost is under 5,000, it is fully depreciated. Further discussion sought clarification on how such assets are recorded in financial statements.