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Machinery and Equipment Depreciation
The word “depreciation” has different meanings, depending on the audience to whom you are speaking. In accounting, depreciation means the allocation of the cost of an asset over time. It’s a method of allocating the purchase price of an asset across its useful life, which takes into account normal wear and tear over the asset’s […]
What Is Fair Market Value
We’ve discussed orderly liquidation value and forced liquidation value in recent posts. Today, we’ll explain the third type of value a Certified Machinery and Equipment Appraiser (CMEA) may assign to your assets: fair market value. Fair market value is based on the best price you’d receive for your machinery or piece of equipment if it […]
What is Forced Liquidation Value?
In last week’s post, What is Orderly Liquidation Value?, we discussed just that. An orderly liquidation value is based on the idea that a company can afford to sell off its assets to the highest bidder. However, the circumstances are different in the case of forced liquidation value, as the name implies. Forced liquidation value, […]
What is Orderly Liquidation Value?
Do you know what a liquidation value is? It’s the estimated amount of money a company’s assets could quickly be sold for if the company went out of business. In a normal, growing industry that shows profit, a company’s liquidation value would be much less than the company’s share price. In an unprofitable or shrinking […]
Why Accountants Need a CMEA
The statements on gift taxes in the IRS Pension Protection Act of 2006 and the aspirational best practices for dealing with the IRS laid out in Circular 230, both of which we’ll discuss in later posts, state the importance of accountants verifying the values of equipment and machinery by securing a certified appraisal. Good accountants […]
Why Attorneys Need a CMEA
Attorneys frequently work on cases that involve the value of a business’ physical assets, such as machinery and equipment, but oftentimes rely on the client’s estimates, follow a depreciation schedule, or guess at their value rather than rely on a certified machinery and equipment appraisal. Even value estimates put forth by an uncertified auctioneer or […]
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