Singer-cd's

[gman]

I have a singer who paid $5,000. for a demo cd. She is the singer and will distribute
the cd. The money was for the master cd.

What would this be depreciated over. 5 yrs?

[Bees Knees]

If she is going to produce CDs from the master to sell, the cost is added to inventory and is factored into COGS. If the master is going to be used to produce promotional CDs that are not going to be sold, then it would be depreciated if it has a useful life of more than one year, or if less, an advertising cost.

Promotional CDs generally have a less than one year life, as a musician would probably re-do it after one year if there are no takers.