A special laptop has been purchased for $3,000, however, it's useful life is greater than 1 year. How do I classify this device?

Answer

A computing device is a supply if the acquisition cost is less than the lesser of the capitalization level established by the non-Federal entity for financial statement purposes or $5,000, regardless of the length of it's useful life. The device is not considered equipment for Federal purposes; however, per University policy, the laptop is a controlled item that should be coded as an expense in the 127* account code range and recorded in Banner Fixed Asset for appropriate inventory tracking.