Age to Come

“Client Note 1 - CAPITALIZATION AND RELATED POLICY TO REFLECT AUTOMATIC CHANGE RESULTING FROM REV PROC 2015-141 PURPOSE THIS ACCOUNTING POLICY ESTABLISHES THE MINIMUM COST (CAPITALIZATION AMOUNT) THAT SHALL BE USED TO DETERMINE THE CAPITAL ASSETS THAT ARE TO BE RECORDED.2 - CAPITAL ASSET DEFINITION A "CAPITAL ASSET" IS DEFINED AS A UNIT OF PROPERTY THAT: (1) HAS AN ECONOMIC USEFUL LIFE THAT EXTENDS BEYOND 12 MONTHS; AND (2) WAS ACQUIRED OR PRODUCED FOR A COST EXCEEDING $500 ($200 FOR SUPPLIES AND MATERIALS); OR EXCEEDING 10% OF THE UNADJUSTED COST BASIS OF AN EXISTING PROPERTY OR $10,000; WHICHEVER IS LESS. CAPITAL ASSETS MUST BE CAPITALIZED AND DEPRECIATED FOR BOOKKEEPING AND TAX PURPOSES.3 - CAPITALIZATION THRESHOLDS THE TAXPAYER ESTABLISHES $500 AS THE THRESHOLD AMOUNT FOR MINIMUM CAPITALIZATION OF A UNIT OF PROPERTY. ANY UNITS OF PROPERTY COSTING BELOW THIS AMOUNT SHOULD BE EXPENSED IN THE BUSINESS BOOKKEEPING. THE TAXPAYER ESTABLISHES $200 AS THE THRESHOLD AMOUNT FOR MINIMUM CAPITALIZATION OF MATERIALS OR SUPPLIES WITH A USEFUL LIFE EXCEEDING 12 MONTHS.4 - CAPITALIZATION METHOD AND PROCEDURE ALL CAPITAL ASSETS ARE RECORDED AT HISTORICAL COST AS OF THE DATE ACQUIRED. TANGIBLE ASSETS COSTING BELOW THE AFOREMENTIONED THRESHOLD AMOUNTS ARE RECORDED AS AN EXPENSE IN THE BUSINESS BOOKKEEPING. ASSETS WITH AN ECONOMIC USEFUL LIFE OF 12 MONTHS OR LESS ARE REQUIRED TO BE EXPENSED FOR BOOKKEEPING PURPOSES, REGARDLESS OF THE ACQUISITION OR PRODUCTION COSTS.5 RECORDKEEPING INVOICES SUBSTANTIATING AN ACQUISITION COST OF EACH UNIT OF PROPERTY SHALL BE RETAINED FOR A MINIMUM OF FOUR YEARS.”

“Advertising and Promotion $3095”

“Office Expenses $4993”

“Travel $14384”

“Interest $163”

“Depreciation $2425”

“Insurance $1043”

“Continuing education $2276”

“BENEVOLANCE $1574”

“HOSPITALITY $260”

“Machinery and Equipment - Beginning $5903 Machinery and Equipment - Ending $5071”

“Miscellaneous - Beginning $135 Miscellaneous - Ending $4740”

“Accounts Receivable - Beginning $902 Accounts Receivable - Ending $3405”

“Receivables-Officers, Directors, Etc. - Beginning $281 Receivables-Officers, Directors, Etc. - Ending $1073”

“Inventories - Beginning $14675 Inventories - Ending $14704”

“Accounts Payable and Accrued Expenses - Beginning $643 Accounts Payable and Accrued Expenses - Ending $8558”