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To: yard_man who wrote (146377)	8/27/2002 8:04:48 PM
From: Oeconomicus	Respond to of 164685

Office? Generally, yes, though it is frequently included in the price of a new computer (not priced separately) and would not necessarily be booked as a separate asset. Length of it's useful life determines whether it is a long-term asset or something that is consumed and, therefore, expensed within the current period. Price goes only to materiality. A capital asset is a capital asset, but if it's cost is not material, then it provides no material future benefit and expensing it for GAAP would, IMO, be acceptable. Most companies, I believe, have some threshold below which a purchased asset would not be capitalized. But I can tell you that $30k is not the threshold. BTW, AFAIK, the IRS doesn't care what you think about the value or the materiality, if you expense a capital asset and they audit you, you will owe them (subject to one exception I know of). Bob Disclaimer: This is not tax or accounting advice. I am not an accountant. Consult yours.