Definitions

Acquisition Cost - Constructed Equipment

Includes cost of materials and University internal service center costs used in the course of construction. University payroll expenses, other than those included in internal service center charges, are not included in the cost of constructed equipment.

Acquisition Cost - Donated Assets

The fair market or appraised value at the date of the gift. If market value or appraised value is not available, the gift will be recorded at an estimated depreciable value.

Acquisition Cost - Purchased Equipment

Includes the invoice price and the cost of any modifications, in transit, insurance, freight (to or from the University) and is reduced by any trade-in. Installation is also included when those costs can easily be identified with the equipment acquisition.

Capital Equipment

Any movable, nonexpendable personal property equipment item, not permanently affixed to a building, with a life expectancy of more than one year and an acquisition cost of $5,000 or more per unit.

Capital Equipment Upgrades

Improvements that increase the value or extend the useful life of the equipment can be added to the cost of a capital equipment asset. To be considered an upgrade to a capital asset, the expense must meet all of the following criteria:

• Expense must be $5,000 or greater Expense must increase the productivity or capacity of equipment beyond its original intent.
• Expense must extend the useful life by 1 year or greater. Note: An expense that maintains the asset in its current condition or restores it to its original condition is expense not capital.