I own a company that offers Free Texas Hold 'Em games to bar/restaurant owners as a form of entertainment for their patrons. I supply the poker tables used, and rather than purchase these tables from a company that sells them, I purchase the raw materials
and tools and build them myself. My question is in regard to the proper accounting treatment for these tables. I understand that they are considered equipment and are subject to depreciation. What I am wondering is the value at which I may record these as
equipment. Am I limited to valuing them solely based on the total cost of the raw materials I purchased or is it OK for me to add to the raw materials/tools cost a fair market amount for my labor that was necessary to build them? For example, say it cost me
$175 for the wood, padding, felt/vinyl, screws, etc.? Now, let's say it would have cost me $350 to purchase a table of similar quality from a company who makes them. Can I record this asset at $350 or am I limited to $175?