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Page 3 <br />Automobiles, Trucks, and Machinery: transportation charges, licensing, <br />painting and installation of additional equipment. <br />Maintenance costs will not be capitalized as they do not add to the value of the asset. <br />Replacements will be capitalized as they add to the value. ie furnaces, pumps, <br />engines etc. <br />D. RETIREMENT: <br />This term is used to describe the removal of a fixed asset from the inventory. An <br />asset may be retired through the following ways: sale, trade-in, obsolescence, lost, <br />stolen or damaged beyond repair. A retirement form will be completed by the <br />appropriate department including the following information: date retired, method of <br />disposition, salvage and trade-in value. The form is then returned to Finance for <br />deletion from the fixed asset inventory. <br />E. TRANSFERS: <br />When an asset is transferred to a different department, the appropriate department <br />will complete a transfer form including the following information: date transferred, <br />from department, to department and why. The form is then returned to Finance to <br />make the change to the fixed asset inventory. <br />F. DEPRECIATION: <br />Depreciation expense will be determined on all asset items that are acquired within the <br />Utility Departments. Depreciation will be determined on the following basis: <br />Type Years <br />Land Improvements 10 <br />Watermains 50 <br />Sewermains 50 <br />Lift stations 20 <br />Well and Pumphouses 30 <br />Water Towers 50 <br />Furniture 10 <br />Office Equipment 5 <br />Compressors 10 <br />Generators 7 <br />Pumps 5 <br />Dehumidifiers 7 <br />Furnaces 10 <br />Fans 10 <br />