Capital assets will be tagged and depreciated if the following conditions are met:

• does not lose its identity or become a component of the building where it resides;
• is of durable nature with an expected service life of more than 5 years; and
• has a value exceeding $5,000 (group purchases over $10,000)

Equipment purchased with grant money should be tagged if it exceeds $1,000.

Purchased assets - recorded at invoice price
Donated assets - recorded at fair market value

Tagging provides a method of assigning a unique identification number to each fixed asset item so that the item can be accounted for and identified within the Fixed Asset system. Each item carries a unique number throughout its entire life regardless of change in location.