Ruth -

It appears the benefit from this acquisition will be realized over a period
of at least 2 years and therefore the costs associated with its' purchase
should be charged accordingly; I would capitalize it.

John D. Pepe
Controller
Stroud Water Research Center
970 Spencer Road
Avondale, PA 19311-9514

VOICE: (610) 268-2153, ext. 253 FAX: (610) 268-0490 E-MAIL:
xxxxxx@stroudcenter.org
Please visit us on the Web: www.stroudcenter.org

-----Original Message-----
From: Research Administration List [mailto:xxxxxx@hrinet.org]On Behalf Of
Ruth Tallman
Sent: Wednesday, July 24, 2002 4:29 PM
To: xxxxxx@HRINET.ORG
Subject: [RESADM-L] Unconventional equipment capitalization

Good afternoon,

I have a question regarding equipment capitalization.  Our equipment
capitalization threshold is $5,000.  We have a situation where one of
our scientists want to buy scientific data which is shipped on a disk
drive (computer hardware).  The combined cost of the data and disk drive
is in excess of $5,000.  The scientist is asking that the purchase be
considered equipment and be exempt from indirect costs.  Assuming the
data and disk drive would have a useful life of 2 years or more, I would
appreciate your opinions on how you would respond to this request.

Ruth Tallman
Office of Research and Sponsored Programs
Lehigh University
526 Brodhead Avenue
Bethlehem, PA  18015
Phone:   (610)758-3024
FAX:    (610)758-5994
E-mail:   xxxxxx@lehigh.edu

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