Have a client who leased equipment for several years with option to buy for $100 at the end of the lease. Client exercised option and purchased for $100. So client now has an asset worth $100.. Right?
Client says equipment's FMV is $20K if they sold it. Wants the $20K to reflect on the books.
What would be the appropriate JE to do this.
$100 to Equipment and the rest to inventory?
Any help appreciated...
TC