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E. Vehicles

A motor vehicle is a self-propelled road vehicle that is used for the
transportation of passengers, or passengers and property. The
capitalization amount includes the total purchase price less any applicable
discounts and any ancillary payments required to place the asset in its
intended state of operation.

F. Intangible Assets

Intangible assets are those that lack physical substance, are non-financial
in nature and have an initial useful life extending beyond a single reporting
period. Intangible assets must be identifiable, meaning they are either
capable of being separated by means of sale, transfer, license or rent, or
that they arise from contractual or other legal rights.

Intangible assets acquired or developed by the City could include
customized software, internally generated software, works of art and
historical treasures. Other examples of intangible assets the City may own
include water rights, timber rights, patents and trademarks.

G. Construction Work in Progress (CWIP)

Construction work in progress represents capitalized costs related to a
capital asset that is not yet substantially ready to be placed in service. For
construction work in progress assets, no depreciation is recorded until the
asset is placed in service. When the asset is placed in service, the asset is
reclassified to the correct category and depreciation begins.
Capitalization

A. Capitalization Thresholds

1. Land must be capitalized regardless of the value or cost.

2. Buildings must be capitalized regardless of the cost.

3. Infrastructure must be capitalized when the useful life is 3 years or
greater and the cost is $100,000 or more.

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