How to record firtures and fitting in final as accounts with adjustment
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A fixture is a capital asset in accounting. This means a fixture is classified as a long-term asset and must be shown in the balance sheet of the financial statements. A fixture is a permanent attachment to real estate such as built-in, non-removable shelving or lighting units permanently attached to a ceiling or wall. Specific rules that pertain to accounting for a fixture include how it is expensed and how it is depreciated over time. Depreciation means you must take a percentage deduction for the expenditure over its estimated tax life as determined by the Internal Revenue Service. If a fixture is attached to real estate, it is treated the same way real estate is treated.
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