Sentences with phrase «life of the asset»

With long - term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extends over more than one year.

In contrast, a finance lease will be for a specific longer period considered to be the full economic life of the asset.

With long - term debt financing, the scheduled repayment of the loan and the estimated useful life of the assets extends over more than one year.

The loan term should match the useful life of the asset just as you wouldn't take a 30 - year auto loan for your car, even if the payments were smaller.

Firms commonly borrow to fund the purchase of furniture and equipment, thereby spreading the cost of each acquisition over the productive life of the asset.

The loan term should match the useful life of the asset just as you wouldn't take a 30 - year auto loan for your car, even if the payments were smaller.

* Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the useful life of the assets financed.

The reduction sets a precedent in statute that the appropriate depreciable life of assets is 15 years, say NAR analysts.

Depending on the orbit, radiation, atomic oxygen, micrometeors, UV, friction and extremes of temperature all limit useful life of assets in space.

Operating & finance leases Operating leases are useful if the lessee needs the equipment to be updated or replaced frequently as: they run for shorter, specific periods shorter than the full economic life of the asset; the lessee is not liable for financing of the asset's full value; the lessee has use of the equipment, but not full ownership; and because the residual value belongs to the lessor.

Because Sharon bought the second - hand fridge for her rental property before 7.30 pm on 9 May 2017, she can still claim depreciation deductions for any remaining life of the asset.

Depreciation An accounting procedure that aims to distribute the cost of tangible capital assets, less any expected salvage value, over the estimated useful life of the asset in a rational and systematic manner.

Loan maturities are based on the ability to repay, the purpose of the loan proceeds, and the life of the assets financed with the loan.

Many 7 (a) loans are used to purchase assets like real estate and equipment because the terms are favorable and allow you to repay the loan in terms compatible with the life of the asset being purchased.

The exact repayment term may be matched to the useful life of the asset being purchased.

These numbers are from the Estimates and are on a cash basis of accounting, whereas in the budget, capital is on an accrual basis of accounting, spreading the costs over the economic life of asset.

This means amortizing cash appropriated for the construction or acquisition of capital assets in a fiscal year to an expense over the estimated useful life of these assets.

It made sense to have «amortization expense» on the income statement, because the life of the asset was «used up» while making the stuff you were selling that year.

Estimate the useful life of the asset being depreciated by comparing it to other assets that your company owns.

The exact repayment term may be matched to the useful life of the asset being purchased.

New long term assets were created, and financed with not enough equity, and debt terms that were shorter than the life of the assets.

Many businesses choose to finance the purchase of expensive equipment to spread the cost over the useful life of the asset, making the purchase more accessible.

Term Loans — similar to a Short Term Loan, the term of this type of loan is based on the economic life of the assets being financed or collateralized.

Different maturities are offered to meet the useful life of the asset you are financing.

All financial companies should have cash flow testing done over the greater of the life of their assets and liabilities, over a wide number of interest rate and credit scenarios, calculating the present value of distributable earnings, to show where they are vulnerable.

Personally, I would try to estimate the likelihood, subjectively, that we would enter the other side of the cycle within the life of the asset in question.

Many 7 (a) loans are used to purchase assets like real estate and equipment because the terms are favorable and allow you to repay the loan in terms compatible with the life of the asset being purchased.

The CCA allows the cost of eligible assets to be deducted for tax purposes at a rate of 50 per cent per year on a declining balance basis — which is faster than would be implied by the useful life of the assets.

In the right circumstances, the P3 model can provide savings and non-financial benefits that will offset the higher finance costs, such as risk transfer, deferral of cost over the life of the asset, and providing a mechanism to ensure that operation and maintenance of the asset is properly budgeted for to preserve the value of the asset over its life.

The length of leases has varied, although this does not appear to be connected to the life of the asset.

... Essentially we are looking for leases that reflect the life of the asset we are building.

«It brings the tax treatment more closely in line with the economic life of the asset,» Renna said.

Of potentially greater consequence for hotels in a defensive position could be extending the life of assets in place.

Whether I should be calculating reserves for maintenance independently of capex, If maintenance can be saved in an account up to a certain dollar level and kept at that amount ongoing for the life of the asset, and if I should front load capital for items like a roof if it's brand new or if I should put those dollars to work acquiring more properties and start saving for those items down the road a little ways (honestly don't know if this is a bad idea or not).

With the right tax and regulatory policies — reforms that treat the industry consistently with other types of businesses, assure predictability for long - term investment, recognize the economically useful life of assets, and encourage capital formation — we believe real estate could create millions of new, middle - class jobs while also contributing to a more efficient and productive domestic economy and workforce.

@Jonathan West the logic is that you invested in an income producing asset and you should be able to recover your cost over the life of that asset.

We also partner with NorthMarq Capital debt and equity experts nationwide to provide a full range of capital markets services for the life of your asset.

Accelerated Depreciation: A depreciation method that allows you to deduct or depreciate a greater portion of the cost of depreciable property in the first years after the property is placed into service, rather than spreading (depreciating) the cost evenly over the life of the asset, as with the straight - line method.

@Paul Ewing One advantage is that you will be able to fully deduct the cost this year rather than waiting to deduct the cost over the life of the asset.