I. GENERAL
Plant and equipment refers to tangible property which has an estimated life of at least two years. If the cost of a piece of movable equipment is less than $5,000, it is considered a "Minor Acquisition" and should be charged to this series of G/L accounts.
If the item cost $5,000 or more, charge a G/L account in the 66xxxx, Plant and Equipment Acquisitions to be Capitalized series.
For the guidelines on the capitalization criteria of fixed assets, refer to GAP 200.050, Plant & Equipment Capitalization.
For additional guidance on the most appropriate G/L account to use for expenses within this range, please review the Recommended G/L Accounts for Common Purchases Matrix(link is external).