home office, work from home, computer @ Pixabay

When you buy an asset, you might not be sure what it’s worth. A lump-sum purchase will give you a value for the asset based on its condition and age. This is different than if you were to buy assets over time with regular payments. In this blog post, we’ll discuss how assets acquired in a lump sum purchase are valued so that your business has accurate records of the cost of those items!

meeting, business, architect @ Pixabay

The cost of the asset is determined by taking the purchase price and multiplying it by either its age or condition. Let’s say you’re buying a new car for $20,00; depending on how old it is, you may pay more than if it were brand-new! In this case, your payment might be something like: $$ = 20,00 x (the number that represents the percentage value) $$, $$=$0%. So in this example, with an 11% condition rating for your vehicle would mean paying $22,200. If you prefer to use another metric such as hours of usage instead of percentages then divide 100 into what will represent that hour average over time. To calculate this means doing some

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