De Minimis Safe Harbor Capitalization Policy - with Audited Financial Statements

Capitalization Policy of pursuant to the de minimis safe harbor election under Regulations §1.263(a)-1(f)
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Certification: We are establishing the following Capitalization Policy before January 1, 2014.
1. All assets (whether or not considered an improvement, betterment, restoration, or adaption of a unit of property) or expenditures for material and supplies of$5,000or less per item, will be recorded as an expense on our annual financial statements or books when paid or incurred

2. This includes any and all assets, whether leased, leasehold improvements, financed, or paid for outright.

3. The threshold amount above will be measured on a per item, per invoice basis.

4. This policy does not apply to purchases for land, inventory, or any expenditure that we elect to capitalize and depreciate.

5. Any asset is defined as a unit of property that is expected to have an initial useful life extending beyond 12 months. Property with an initial useful life of one year or less, regardless of the dollar amount of expenditure, will be recorded as an expense when paid or incurred, in accordance with our existing method of accounting employed for income tax return preparation.
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