Useful Life Schedule
Dartmouth acquires capital assets in pursuit of its mission. In line with federal
regulation and good business practice. To depreciate their value properly over time, amortizing over the useful life of the asset, physical assets must be recorded and capitalized in accordance with generally accepted accounting principles. If their value is below the capitalization(<$5000.00) threshold, assets neither are added to the capital inventory, nor are they depreciated, but are fully expensed at the time of acquisition.
Dartmouth elects to use the full-year convention method for depreciation. Fixed assets purchased or in use by 12/31 are depreciated a full year in the current fiscal year and those purchased or in use after 12/31 are not depreciated until the following fiscal year. All capital expenses relating to new construction and renovation projects must be componentized. Dartmouth uses the below list of economic useful lives.
Equipment & Moveable Equipment
Three (3) Years
- Small computers, server under $25,000
Four (4) Years
Five (5) Years
- Business, office (copiers), servers over $25,000, vehicles, software
Seven (7) Years
- Athletic, food service, safety, scientific, shop/maintenance, heavy duty trucks
Ten (10) Years
- Building services (security systems), furniture