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#Should point of sales system be capitalized plus

If the lease contains an option to renew for additional years but renewal is uncertain or the likelihood of renewal is uncertain, the improvements should be depreciated over the original term of the lease or the useful life of the improvement. Leasehold improvements are generally depreciated over the lesser of the original term of the lease or the useful life of the improvements. These improvements should be capitalized if the cost exceeds $50,000 and the cost is borne by the institution. Leasehold improvements include improvements to existing or new leased spaces. Any adjustment of estimated lives is a change in accounting estimate and should be applied to current and future depreciation calculations. Special Note: As assets near the end of their estimated lives, the estimates should be reviewed for accuracy of the original estimate and adjusted to reflect the anticipated number of years of continued use. Land improvements are normally depreciated over a useful life of 20 years. shrubbery, flowers, trees) retaining walls, parking lots, fencing, sidewalks, sculptures, and art work.

Examples of land improvements include, but are not limited to, site improvements such as landscaping that has a limited life (e.g.

Land ImprovementsĮxpenditures for land improvements that have limited lives should be capitalized in a separate account from the Land and depreciated over their estimated useful lives. Land held for investment purposes should be classified as investments rather than as property. The cost of the appraisal itself, however, is expensed at the time incurred.Ĭosts incurred but the land is not acquired should be expensed. Land acquired by donation, or the intent to donate, e.g., for one dollar, should be recorded on the basis of an appraisal of the market value at the date of acquisition. A liability should be recognized for the amount of the lien, mortgage, or encumbrance assumed by the institution. Assumption of liens, mortgages, or encumbrances on the property increases the purchase price and should be included in the original cost.

#Should point of sales system be capitalized plus

Land acquired through forfeiture should be capitalized at the total amount of all taxes, liens, and other claims surrendered, plus all other costs incidental to acquiring ownership and perfecting title.

Cost of getting the land in condition for its intended use, such as excavation, grading, filling, draining, and clearing.

landscaping) and improvements that will later be maintained and replaced by other governments (e.g.

Unpaid taxes (to the date of acquisition) assumed by the institution.

Cost of removing unwanted buildings from the land, less any proceeds from salvage.

Cost of an option to buy the acquired land.

Commissions related to the acquisition.

The following are examples of expenditures that should be capitalized as a part of the cost of land: Land acquired by the institution should be recorded at its original cost which includes a variety of expenditures related to its acquisition and its preparation for use as intended by the institution. Land is generally considered to have an unlimited life and is therefore a non-depreciable asset.