Sometime in the next year or so, I plan to start my own business after I graduate from college. It will be a computer services business focusing on small business computing maintenence contracts.
Now.. I have a TON of computer parts just laying around and I also plan to buy some others from my friends. Basically, I will have a lot of new parts - but also used parts - to be able to quickly fix any problem imagineable.
So, when I transfer personal computer parts to my incorporated business, I plan to depreciate them financially for however old they are. But, if I say... buy a pallet of junk for $50 and find two parts worth $100 each in that pallet, can I put the parts into the business and call them $100 parts or do they have to be called $50 parts? I need to know because the more 'inventory' and other capital that goes into the business, the higher the small business loan I can get...
Perhaps I just need a small financial overview - but specifics like this were not covered in my Finance class..
Now.. I have a TON of computer parts just laying around and I also plan to buy some others from my friends. Basically, I will have a lot of new parts - but also used parts - to be able to quickly fix any problem imagineable.
So, when I transfer personal computer parts to my incorporated business, I plan to depreciate them financially for however old they are. But, if I say... buy a pallet of junk for $50 and find two parts worth $100 each in that pallet, can I put the parts into the business and call them $100 parts or do they have to be called $50 parts? I need to know because the more 'inventory' and other capital that goes into the business, the higher the small business loan I can get...
Perhaps I just need a small financial overview - but specifics like this were not covered in my Finance class..
