Bulk purchase of like equipment and/or furniture may be considered capital equipment purchases but are not inventorial when the purchases are in the following dollar amounts:
Any equipment purchases that add value or extend the life of an existing piece of inventorial equipment shall be considered a capital purchase regardless of cost, and the total amount of the purchase will be added to the value of the existing equipment.
Software included with the purchase of hardware can be capitalized regardless of cost and therefore be included in the capital purchase. Individual software purchases, development costs, license fees, and maintenance costs with a value of less than $5,000 should be expensed. However, software purchases as described herein with a value of $5,000 or more should be considered a capital purchase.
For additional guidance or information regarding the capitalization of equipment, please contact Jon Ip, Property Accountant.