Anyone here an accountant?

mockingbird131313

mockingbird131313

Well-Known Member
el1 said:
need some help with an accounting related topic
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If the question is, "does grow lights for my grow operation count as a business expense?". I don't think so. But hey, that's just me talking. I am no accountant, but post the question. You are likely to get a quilified answer, from someone here.
 
el1

el1

Well-Known Member
ok here it is , if i have a building that costs $250,000 and the depreciation rate is a standard 2.5% per year , what is the residual value of the building?
 
el1

el1

Well-Known Member
it doesn't say , all it says is the business was started ''a couple'' of years ago

i figure
$250,000 * 0.025 = 6250
$250,000-6250=$243,750<-- being the residual value of one year


Hows that look?
 
C

capncash

Well-Known Member
there is something fishy about that question like is there a max depreciation is it straight line depreciation or can you take it all in one year?
 
panhead

panhead

Well-Known Member
el1 said:
ok here it is , if i have a building that costs $250,000 and the depreciation rate is a standard 2.5% per year , what is the residual value of the building?
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$147 MILLION if you use the same math table the police use when they bust a grow op with 6 plants & 2 cfl's.
 
el1

el1

Well-Known Member
for real lol , police are always like
" Today a criminal organisations marijuana plantations were discovered containing 6 plants each worth 6 million on the street"

Wish i knew who they sold theirs to!
 
smokinjs

smokinjs

Well-Known Member
well if you divide the residual amount by 13 then add 6 times that amount of two months time, then multiply that number by 658, then subtract 23 to the total equation and what do you get. a common denominator of 34 divided by 19. which everyone knows is 8,990,098. im not totally 100% on that, but im pretty sure.
 
jondog123

jondog123

Well-Known Member
el1 said:
it doesn't say , all it says is the business was started ''a couple'' of years ago

i figure
$250,000 * 0.025 = 6250
$250,000-6250=$243,750<-- being the residual value of one year


Hows that look?
Click to expand...
Not quite. The residual value is the remaining value of an asset after it has been fully depreciated over its useful life. If in the problem you were given the straight line method for depreciation and knew its useful life, then you can calculate the residual value. Having the cost of the asset and the depreciation rate does nothing for you without useful life.

What you calculated above is called book value (cost minus accumulated depreciation)
 
el1

el1

Well-Known Member
jondog123 said:
Not quite. The residual value is the remaining value of an asset after it has been fully depreciated over its useful life. If in the problem you were given the straight line method for depreciation and knew its useful life, then you can calculate the residual value. Having the cost of the asset and the depreciation rate does nothing for you without useful life.

What you calculated above is called book value (cost minus accumulated depreciation)
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Thank you for an actual answer , not a stupid answer from someone with half a brain, ill have to go find out what the bloody usefull life is , cheers mate.

Also sorry for posting in this area i wasnt sure where to post.This seems to have done the trick anywho.
 
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