Defining Equipment Value

So the next time someone asks you the value of your equipment, you can counter with: "As of when and for what purpose?" You should have a pretty good idea of the answer, if you are hoping to account for your business with reasonable expense levels attributable to your equipment investment. ?

Equipment Value Categories
The following will give you a rough idea of what "equipment value" can mean. I'm sure you can add a few more categories of your own. If you think of anything good, let me know.

• Retail value
• Trade-in value
• Wholesale value
• Book value
• Loan value
• Tax basis
• AMT basis
• Fair value
• Insurance value
• Scrap value
• Rent-to-sell
• Rental value transition value
• Going concern value

Garry Bartecki is director of dealer/distributor services at BDO Seidman, LLP of Chicago, as well as a consultant to the AED. He has also worked as an independent CPA and consultant to equipment dealers. He can be reached at (312) 616-4677 or gbartecki@bdo.com.