What is the definition of capital equipment?
The definition of capital equipment and related policies are designed to comply with various US accounting and governmental rules and regulations. UTAP's definition of equipment is "an article of non-expendable tangible personal property having a useful life of more than one year and an acquisition cost of $5,000 or more per unit. The capital expenditure includes both the cost of the asset itself as well as expenditures necessary to put it in place. Capital expenditure for equipment, for example, means the net invoice price of the equipment including the cost of any modifications, attachments and accessories or auxiliary apparatus necessary to make it usable for the purposes for which it is acquired. Ancillary charges such as taxes, duty, and protective in transit insurance, freight and installation are also included in the total purchase price.