CCA Class 8

by Janna
(Toronto, ON, Canada)

Recording Office Furniture Under $500

Recording Office Furniture Under $500

I have an invoice totaling $1,559.34 which includes a desk for $400.00; a credenza for $300.00; etc. Each item is less than $500.00.

Should I put it as one piece of furniture in Class 8 with a cost of $1559.00 or record each piece separate to an expense account?

Thank you.

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Hi Janna,

As you purchased all the items at the same time, and they have a life longer than one year, I would capitalize them for bookkeeping purposes even though each item is under $500.

I would probably call the account Furniture Class 8, with two subaccounts; one for Original Cost and the other for Amortization.

It will give a truer picture of your operating expenses.

You might want to read the interesting discussion in the comments section of Bookkeeping for Small Restaurant. It discusses aggregate purchases.

P.S. I would like to remind you there is a difference between information and advice. The general information provided in this post or on my site should not be construed as advice. You should not act or rely on this information without engaging professional advice specific to your situation prior to using this site content for any reason whatsoever.

Comments for CCA Class 8

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Nov 22, 2011
CCA Class 12
by: Anonymous

Does the same more than 1 year useful life rule apply to capitalizing class 12 items?

How about class 12 sofware? Where the useful life is hard to tell? And the cost can be from $10 to $500.

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Follow the restaurant link above for the excellent discussion on class 12 assets.

Click here to add your own comments

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