[Not a Quitter]

Would you capitalize a security system for a building? Cost is $60k.

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[seattleacct]

I think so. It's useful life is going to be longer than a year. It might even be considered an improvement, since it's incorporated into the building, but I'm not positive.

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[seattleacct]

I think so. It's useful life is going to be longer than a year. It might even be considered an improvement, since it's incorporated into the building, but I'm not positive.

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R:77
F:76

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[stoleway]

@NotaQuitter

You can capitalize the cost of the security system if the company owns the building or if the building is under a capital lease.

If the building is under operating lease then you cannot capitalize it as part of the building, you have to report it separately as an Asset (leasehold improvement) and amortize it over its useful life.

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[stoleway]

@NotaQuitter

You can capitalize the cost of the security system if the company owns the building or if the building is under a capital lease.

If the building is under operating lease then you cannot capitalize it as part of the building, you have to report it separately as an Asset (leasehold improvement) and amortize it over its useful life.

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Not a Quitter]

Thanks guys, these were my thoughts exactly but wanted to run it by y'all.

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Not a Quitter]

Thanks guys, these were my thoughts exactly but wanted to run it by y'all.

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Not a Quitter]

Okay let me give more details. My company operates out of two locations. One location is owned, and the other is leased. I guess what I need to do is capitalize the part in the owned building as a capital asset and capitalize the cost of the security system in the leased building as a leasehold improvement over the life of the lease NOT the useful life of the asset, right?

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[Not a Quitter]

Okay let me give more details. My company operates out of two locations. One location is owned, and the other is leased. I guess what I need to do is capitalize the part in the owned building as a capital asset and capitalize the cost of the security system in the leased building as a leasehold improvement over the life of the lease NOT the useful life of the asset, right?

FAR- 85 I'm DONE!
BEC- 75
REG- 60,60,75
AUD- 74,74,83

CPAExcel used for BEC, AUD, REG
Exam Matrix used for FAR plus NINJA Blitz, cpareviewforfree and a little CPAExcel

[stoleway]

if the lease is operating lease, then you amortize it over the lease term or the useful life of the asset (whichever is less)

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[stoleway]

if the lease is operating lease, then you amortize it over the lease term or the useful life of the asset (whichever is less)

REG -63│ 84!!
BEC- 59│70│ 71 │78!
AUD- 75!
FAR- 87!

Mass-CPA

[Mike]

If the capital lease is capital because of ownership transfer or BPO, then over just the asset life. If it is capital because of the 75% or 90% then it is also the lesser of the lease term or the useful life. Fun fun.

[Mike]

If the capital lease is capital because of ownership transfer or BPO, then over just the asset life. If it is capital because of the 75% or 90% then it is also the lesser of the lease term or the useful life. Fun fun.

[Author]

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