Problem:
The Town's fixed asset capitalization threshold is $5,000. For each item in the following list, please state whether the expense qualifies as "capital" and why:
a. A $500,000 new roof being added to an existing $5 million building
b. $12,000 for a rebuilt transmission for a bus (A new hybrid bus costs $450,000.)
c. $800 for tax and tags on a new police vehicle
d. $2,000 installation fee for a new emergency generator that costs $50,000
e. $7,000 worth of library books