Page 429 - FortWorthFY23AdoptedBudget

4. Betterments and Improvements qualifying as a capital asset is defined
as a single item with a useful life of 2 years or greater with an
acquisition cost of:
a. Building Improvements at $100,000 or more
b. Infrastructure Improvements at $100,000 or more
c. Machinery and Equipment Improvements at $25,000 or
more

5. Machinery and Equipment qualifying as a capital asset is defined as a
single item with an acquisition cost of $25,000 or more and has a
useful life of 2 years or greater. This includes items designed for off
road.

6. Vehicles must be capitalized when the useful life is 4 years or greater,
the cost is $5,000 or greater and it meets both of the following criteria:

a. Self-propelled

b. Primary use is on public streets and the unit is street legal

7. Intangible assets must be capitalized when the useful life is 3 years or
greater and the cost is $100,000 or more with the exception of works
of art and historical treasures, which are capitalized regardless of life
or cost.

8. Bulk machinery and equipment per lease contract will be capitalized
if the total amount is over $500,000 for the life of the lease.

B. Contributed or Donated Assets

Contributed or donated assets must be recorded at acquisition value. Refer
to the Donations Policy for capitalization thresholds per category.
Acquisition value is the price that would be paid to acquire an asset with
equivalent service potential in an orderly market transaction at the
acquisition date, or the amount at which a liability could be liquidated with
the counterparty at the acquisition date. With regard to donated land, an
appraisal must be no older than five (5) years in order to be used to
determine a value for the land. If an appraisal is greater than five (5) years
old or an appraisal does not exist, then appropriate effort must be made to

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