(A) The definition of machinery and equipment is an apparatus, tool or conglomeration of pieces to form a tool. The tool will stand alone and not become a part of a basic structure or building. This category also includes any other asset or type of physical property not otherwise classified in the Policy.
(B) The town will capitalize and tag items with an individual value equal to or greater than $5,000. Machinery combined with other machinery to form one unit with a total value greater than the above mentioned limit will be one unit.
(C) Shipping charges, consultant fees and any other costs directly associated with the purchase, delivery or setup, (including contractors and/or town employees (salary and benefits)), which make such equipment operable for its intended use and purpose will be capitalized.
(D) Improvement or renovation to existing machinery and equipment will be capitalized only if the result of the change meets all of the following conditions:
(1) Total costs exceed $5,000;
(2) The useful life is extended two or more years; and
(3) The total cost will be greater than the current book value and less than the fair market value.
(E) Salvage value of machinery or equipment will be determined on an asset-by-asset basis. Depreciation will be calculated at year end.
(2014 Code, § A3.4(3))