water purifier is a fixed asset

 the cost of production that is fixed or cannot be changed by the producer.- The cost of water purifiers is much higher than the 

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price at which they are sold, because manufacturers have to provide for both manufacturing and future replacement costs.

 

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- If a company's products are fixed assets, then when calculating their value, certain depreciation charges must be taken into account.

 

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- Examples of water purifiers include chemical filters and reverse osmosis machines.   Water purifiers can only be used once before they need to be replaced; therefore, these products are considered fixed assets in terms of their resale value. 

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 For example, if you purchase a water purifier for $150, the company will consider the product a fixed asset. The company will not sell the product for $150, because it must consider the replacement cost of other water purifiers.  

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 Since water purifiers wear out over time and must be replaced, companies must use depreciation to determine their value. In this case, the depreciation expense might be $100 per year over five years.

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- A variety of factors can contribute to how much a company decides to charge for its products. In addition to replacement costs, a firm may include additional costs when setting prices for its products

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- A company has several options when it comes to selling fixed assets. A water purifier is considered a fixed asset. The water purifier is fixed asset.

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 It's a physical/moving asset that no longer depreciates. Water purifier is not consumable and has a finite life-cycle. It's an intangible or immovable fixed asset.Water Purification (A Fixed Asset)

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The water purifier used by entrepreneurs in the early stages of the business is fixed asset since it cannot be consumed, and its life cycle is finite. 

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The investment made in this item needs to be accounted for as such and any depreciation taken can only go towards its amortization cost that ultimately goes into income statement as expenses on operating activities…..

 

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This means there is no significant depreciation in the value of water purifiers and they cannot be written off on the company’s books. This applies to all accounts, such as rental property, cars and machinery.

 

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The fixed asset treatment comes into affect when things are not expected to depreciate in value over short periods of time - usually less than five years from purchase date. 

 

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The value does not change but it does not go up either over time because its fixing cost account for its total cost base when purchased, including any capital investments made by the business at purchase date or afterwards.

 

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A water purifier is not an asset in the normal sense of being a movable thing that can be taken out of the business and sold. It is considered a fixed asset because its value does not change over time as demonstrated by the below example.

 

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The business purchased three water purifiers for $4,000 each on 1 January 2014. On 1 April 2018, one water purifier had been used 4 years and the remaining two were 14 and 15 years old respectively. The average age of use for all three was 3 years and each has exhausted its useful life by April 2018.

 

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