Inventory for Rental? GAAP treatment

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#1
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297
Joined:
7-Jul-2014 6:39pm
Location:
California
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
 

#2
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6043
Joined:
22-Apr-2014 3:06pm
Location:
WA State
Wouldn't "inventory held for rental" be currently depreciated? That wouldn't make it inventory at all, which, I think, answers your question.
~Captcook
 


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