CLASSIFYING PROPERTY - EQUIPMENT - 8610.5

(Revised 10/2020 and renumbered from 8614)

All other tangible capital assets/property are recorded in the general ledger as equipment. Equipment costs are capitalized when the capitalization threshold in SAM section 8602 is met.

Examples include:

• Computers
• Vehicles
• Tools
• Machinery
• Furniture, fixtures, and similar movable items

Modular furniture systems, including desktops, shelves, partitions, storage, etc., should be capitalized if the individual component cost is $5,000 or more.

The cost of equipment includes the purchase price plus all related costs to acquire, install and prepare the equipment for its intended use in its intended location (e.g., freight charges, sales tax and installation costs).

Record Equipment in Account 1605000 (Legacy Account 2341).