Running head: CAPITALIZATION
Property Management Principles
This essay is on what can be found in my imaginary home as far as a capitalization inventory list. I will also describe the items I find and how you can make a record to keep track of the items on the inventory list in a computer and by hand as well.
What is capitalization? Well some might say it’s how much you owe on your business, building. Instead it’s actually the cost of a fixed asset but is written off as a depreciation over periods of time. Examples are a car, home, land. But in this essay we are going to be discussing what kind of home I would like what I would find in it. As well as talking about what I would find in it I will be discussing how to make an inventory list of the items we find in the home and how to keep track of it in the computer and by hand. Also how much capitalization I would actually need to cover the asset or assets.
Examples, my house is going to be small but complex. Inside is a computer that was bought 2013, fridge, dishwasher, stove, car, tv, and washer and dryer. I believe almost all these things can be capitalized. In order to make an inventory list you have to have the identification codes for each item, as well when they were made, what type of company makes the item. Once you figure that stuff out then you can set up an inventory list. Setting up a place for certain things, a item number to be processed in the computer for easier access to find later.
Well as for by hand your going to need to print off a journal list that has all the inventory you should have, item number, codes for the specific item, and where it will be located. Next after you have found all the items you should be able to see how much you have left on the item as it depreciates so you know when to replace the item. So for my items I would have to say I would choose the small-capitalization...