Buying a vehicle

by Kathy
(Florida)

If I have four stores and they each own their own truck, but one store needs a newer truck, can I purchase that truck and divide the expense between all four stores. Example: one store (the one using it) would be charged for 70% and the other stores would be charged 10% each of the cost even though they are not using it.


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Hi Kathy!

I'm assuming each store is treated as a separate entity, and financial statements are prepared for each store individually. So store 1 has its own assets and liabilities, store 2 has its own assets and liabilities, etc.

If the other stores won't be using this truck, then I would say only the store using it would own it, and pay for its upkeep.

I hope that helps!

Kathy

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