Capital Equipment
Assets used long-term in business operations: machinery, vehicles, buildings, computers.
Formula
Net Book Value = Cost of Asset − Accumulated Depreciation
Real World
Tesla's Gigafactory in Berlin required billions in capital equipment — robotic assembly lines and battery machinery — funded through a mix of loans and retained profit to scale production rapidly.
Exam Focus
Remember capital equipment appears on the balance sheet as a non-current asset; confusing it with a current asset is a frequent exam error.
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