CCA Class 8

by Janna
(Toronto, ON, Canada)

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.

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.






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