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Capital Assets

Expenditures for capital assets acquired or constructed for general District purposes are reported in the governmental fund that financed the acquisition or construction. The capital assets so acquired are reported at cost in the government-wide statement of net position but are not reported in the governmental fund financial statements. Capital assets are defined by the District as those costing $1,000 or more or electronic equipment, such as computers, tablets, printers, and projectors, or band equipment costing $250 or more. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed.

Donated assets are recorded at acquisition value at the date of donation. Land and buildings acquired or constructed prior to July 1, 1972, are stated at estimated historical cost using price levels at the time of acquisition and, as a result, $1,348,251 of stated land values and $15,047,877 of stated building values are based on these estimates.

The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend the assets lives are not capitalized. Interest costs incurred during construction of capital assets are not considered material and are not capitalized as part of the costs of construction.

The original recorded value of capital assets, less the estimated salvage value, is used to depreciate capital assets using the straight-line method over the following estimated useful lives:

Description Estimated Lives

Improvements Other than Buildings 15 years

Buildings and Fixed Equipment 20 - 40 years

Furniture, Fixtures, and Equipment 3 - 15 years

Motor Vehicles 5 - 10 years

Audio Visual Materials and Computer Software 5 years

Changes in capital assets for the current year are further described in Note 6.