ILLMAS Posted January 18, 2022 Report Posted January 18, 2022 An auditor is making a mountain out something petty: Facts Non-profit rents a school building and they paid a plumbing contractor to run new gas and water lines to a room for a kitchen (for cooking classes), then a sink and commercial grade appliances were bought and installed. How would you classify each asset? new gas and water lines Kitchen sink stove refrigerator Quote
jklcpa Posted January 18, 2022 Report Posted January 18, 2022 19 minutes ago, ILLMAS said: new gas and water lines - structural component of the building Kitchen sink - structural component of the building stove - tangible personal property refrigerator - tangible personal property Above answers - for sink is based on that it sounds like this is a new space or with new purpose and no existing sink that was being repaired. Also, this is assuming that the stove and refrigerator being "commercial grade' may possibly exceed the de minimis threshold. I'm sure someone here will come along with another viewpoint. 2 Quote
ILLMAS Posted January 18, 2022 Author Report Posted January 18, 2022 Thanks Judy. For some reason I could not edit the post, but I should of added, if it falls under equipment, furniture & fixtures, leasehold improvement etc... Quote
Lee B Posted January 18, 2022 Report Posted January 18, 2022 Gas Lines, Water Lines & Kitchen Sink - Leasehold Improvements Stove & Refrigerator - Furniture & Equipment 4 Quote
jklcpa Posted January 18, 2022 Report Posted January 18, 2022 44 minutes ago, ILLMAS said: Thanks Judy. For some reason I could not edit the post, but I should of added, if it falls under equipment, furniture & fixtures, leasehold improvement etc... Oh, sorry, I thought that was obvious from my answers. Anyway, cbslee's answer made clear how I would classify each asset. 2 Quote
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