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Beginners question about profit
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<blockquote data-quote="HerefordSire" data-source="post: 692727" data-attributes="member: 4437"><p><em>I am not sure.....but I think you capitalize all the purchases, depreciate them over a certain number of years, then cows sold reduce your capitalizations costs and depreciation. Retained heifers are a part of your capitalization costs. Calves that are sold are cost of goods sold line items.</em></p><p><em></em></p><p><em>The effect would be you are transferring the capitilization cost from culled cow to heifer, if any.</em></p><p><em></em></p><p><em>Douglas will know.</em></p></blockquote><p></p>
[QUOTE="HerefordSire, post: 692727, member: 4437"] [i]I am not sure.....but I think you capitalize all the purchases, depreciate them over a certain number of years, then cows sold reduce your capitalizations costs and depreciation. Retained heifers are a part of your capitalization costs. Calves that are sold are cost of goods sold line items. The effect would be you are transferring the capitilization cost from culled cow to heifer, if any. Douglas will know.[/i] [/QUOTE]
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