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Asset Capitalization

We are planning on purchasing a significant amount of large metal trays that will be used with our manufacturing equipment. Individually, they only cost about $300, but in total will put us back about $180K - they all will be purchased at the same time.

Can we capitalize these as assets or do we have to expense them on the P&L?

Answers

Len Green
Title: Performance Improvement Consultant and E..
Company: Haygarth Consulting LLC
LinkedIn Profile
(Performance Improvement Consultant and ERP Strategist, Haygarth Consulting LLC) |

What is their useful life?

Ankit Tomar
Title: Pro Advisor
Company: Wizxpert
(Pro Advisor, Wizxpert) |

Yes I think you have enough assets.

Anonymous
(Accountant) |

I'd say 30 years of useful life - they are metal trays that won't ever really deteriorate.

(Agent, JKS Solutions, Inc.) |

I think you have enough assets. However nobody can guess previous what will happen in future.

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