Current location - Recipe Complete Network - Catering franchise - Is it necessary to depreciate fixed assets when a company is in the process of construction? If so, what is it?
Is it necessary to depreciate fixed assets when a company is in the process of construction? If so, what is it?
Depreciation of Fixed Assets Purchased during the Preparation Period

If a new company purchases items during the preparation period that meet the criteria for fixed assets, they need to be recorded and depreciated. The accounting entries are:

Debit: Long-term Amortized Expenses - Start-up Expenses - Depreciation Expenses

Credit: Accumulated Depreciation