Title: GAP 200.050, Plant & Equipment Capitalization | Accounting | Duke
Headings: GAP 200.050, Plant & Equipment Capitalization
GAP 200.050, Plant & Equipment Capitalization
I. General
II. Capitalization of Movable Equipment
III. Capitalization of Telecommunication Equipment
IV. Capitalization of Fixed Assets
V. Amount to be Capitalized
VI. Operations and Recording Fixed Assets
I. General
II. Capitalization of Movable Equipment
Definitions for Capital Expenditures
Definitions for Non-Capital Expenditures
Fleet Purchases
III. Capitalization of Telecommunication Equipment
IV. Capitalization of Fixed Assets
Criteria for Capitalizing Fixed Equipment
Criteria for Capitalizing New Buildings
Criteria for Capitalizing Renovations or Building Additions
Definitions
Criteria for Capitalizing Land (Acquired After 1971)
V. Amount to be Capitalized
VI. Operations and Recording of Fixed Assets

Content: Have individual first cost value of $5,000.00 or more. Are durable (an economic useful life of more than two years). Criteria for Capitalizing New Buildings
New buildings are capital. Criteria for Capitalizing Renovations or Building Additions
A renovation or building addition is capital when it enhances the use of, or extends the life of the building if the capitalizable amount equals or exceeds $100,000.00 or 20% of the building cost, whichever is less. Definitions
Enhance the use of: The efficiency of a building or portion thereof would be improved
Extends the life: The useful life of the building has been extended by two years or more beyond its original estimated useful life
Capitalizable amount: The total cost of a renovation project, less movable equipment expense and other expense incidental to the project. Incidental cost to a project is that cost contiguous to the project or unrelated repairs, which do not lend to the enhancement or extension of the building life (e.g., internal moving and storage costs). Criteria for Capitalizing Land (Acquired After 1971)
Land acquired for speculation is not capitalized.