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Asset classification


ILLMAS
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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 

 

 

 

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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.   

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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. 

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