Exhibit D - Guidelines for determining Capital Equipment

An acquisition qualifies as capital equipment if it meets three criteria:

  1. Item has a per-unit acquisition cost of $5,000.00 or more, before any trade-in allowance if applicable.
  2. The acquired item has a useful life expectancy of one year or more.
  3. The item purchased is moveable; that is, it is not permanently affixed to a building or another object in such a way as to lose its unique identity.

If the three criteria above are met, then the following can be capitalized in addition to the cost:

  • Freight
  • In-transit insurance
  • Preparing the site or asset for intended use
  • Training
  • Installation
  • Value received from trade-in of an existing asset

Costs that cannot be capitalized:

  • Repair or replacement costs, spare parts (e.g. parts, labor)
  • Maintenance and warranty agreements
  • Consumables/disposable items used with capital equipment (e.g. pipets, slides, chemicals, liquids, gases, or similar supporting supplies)
  • Items considered as part of a building or permanently installed or affixed to a building (e.g. sinks, window air conditioners, fume hoods, buried fuel tanks)M