We are planning on purchasing a significant amount of large metal trays that will be used with our manufacturing equipment. Individually, they only cost about $300, but in total will put us back about $180K - they all will be purchased at the same time. Can we capitalize these as assets or do we have to expense them on the P&L?
Asset Capitalization
Answers
What is their useful life?
Yes I think you have enough assets.
I'd say 30 years of useful life - they are metal trays that won't ever really deteriorate.
I think you have enough assets. However nobody can guess previous what will happen in future.
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Accounting