Exhibit D - Guidelines for determining Capital Equipment

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

Item has a per-unit acquisition cost of $5,000.00 or more, before any trade-in allowance if applicable.
The acquired item has a useful life expectancy of one year or more.
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