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• Original contract price of the asset acquired or cost of design and
construction

• Expenses incurred in remodeling, reconditioning, or altering a
purchased building to make it available for the purpose for which
it was acquired.

• Expenses incurred for the preparation of plans, specifications,
blueprints, etc.

• Cost of building permits

• Payment of noncurrent taxes accrued on the building at date of
purchase, if payable by purchaser

• Architects’ and engineers’ fees for design and supervision

• Costs of temporary facilities used during the construction period

C. Infrastructure

Infrastructure assets are long-lived capital assets that normally are
stationary in nature and normally can be preserved for a significantly
greater number of years than most capital assets. Examples include roads,
bridges, tunnels, drainage systems, water and sewer systems, dams and
lighting systems.

D. Machinery and equipment

This classification includes construction and maintenance equipment,
office equipment and furnishings, etc. above the capitalization threshold.
Capitalization of equipment costs may include, but are not limited to, the
following:

• Original contract or invoice cost

• Freight, acquisition fees, import duties, handling and storage costs

• Specific in-transit insurance charges

• Installation charges

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