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<br />. <br /> <br />. <br /> <br />. <br /> <br />Equipment, Machinery and Vehicles refer to fixed or movable tangible assets used for <br />operations, the benefits of which extend beyond one year from date ofreceipt. <br /> <br />Examples of expenditures to be capitalized as equipment, machinery, and vehicles include: <br /> <br />. Original contract or invoice price; <br />. Freight chargcs; <br />. Handling and storage charges; <br />. In-transit insurance charges; <br />. Sales, use and other taxes imposed on the acquisition; <br />. Installation charges; <br />. Charges for testing and preparation for use; <br />. Cost of reconditioning used items when purchased; and <br />. Parts and labor associated with the construction of equipment, machinery, or vehicle. <br /> <br />Note that the cost of extended warranties and/or maintenance agreements, which can be <br />separately identified from the cost of the equipment, machinery, or vehicle, shall not be <br />capitalized. <br /> <br />Infrastructure Assets are long-lived capital assets that are linear and stationary in nature and can <br />be preserved for a significantly greater number of years than most capital assets. <br /> <br />Examples of infrastructure assets include: <br /> <br />. Roads, streets, curbs, gutters, sidewalks; <br />. Bridges; <br />. Water and sanitary sewer systems; <br />. Drainage and stornl water systems; <br />. Street light systems; and <br />. Signage. <br /> <br />Infrastructure assets shall be capitalized and depreciated unless the modified approach is used. <br />The modified approach is an alternative to reporting depreciation for infrastructure assets that <br />meet the following criteria: <br />. The assets are managed using a qualifying asset management system; and <br />. It is documented that the assets are being preserved at or above a condition level <br />established by the City. <br /> <br />Under the modified approach the infrastructure, assets are not depreciated, and only the costs that <br />increase the capacity or efficiency of the asset are capitalized, while all other expenditures that <br />preserve the useful life of the assets are expensed. Only infrastructure assets that comprise a <br />network or subsystem of a network can be reportcd using the modified approach. <br /> <br />Other Capital Assets include computer software that is either purchased or developed for <br />internal use. Internally developed or purchased software should be capitalized if the cost of the <br />software exceeds the capitalization threshold. The software should be depreciated over the <br />software's estimated useful life. Capitalization of computer software includes software license <br />fees if the total dollar amount of the fee divided by the number of units or terminals exceeds the <br />threshold. <br /> <br />Examples of expenditures to be capitalized as computer software include: <br /> <br />8 <br />