What do you think is a fair rate of depreciation on a RIB?
Two years ago I bought a 1995 RIB/engine/trailer for about £5000 and I've spent a shedload of time and £2.5k repair money to add equipment, replace defective parts, upgrade, maintain, etc. My fishing mate kindly offered to share costs which he has done over the past two years and has more or less put in almost half the money (both capital and running costs - fuel, insurance, etc.).
Now he's going off sea-fishing and wishes to pull out and receive a share of the value of the boat.
Now, the question is how do I put a fair value on the capital cost, the extensive time and effort that I've put in, what annual depreciation to allow, etc?
Your advice would be appreciated!!