I have a new client that sells/rents farm equipment (tractors, etc). Some inventories are exclusively for sale, while others are inventories for rental but are available for sale as well. Let's say Inventory consist of:
Inventory held for resale 200,000
Inventory held for rental 800,000
how do we account for the inventory held for rental under GAAP, a. non-current vs current b. is there a market standard in terms of reserve % for the inventory held for rental?
thx