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Non-capitalizable equipment refers to assets that are not recorded as capital expenditures on a company's balance sheet because their cost is below a certain threshold or they are expected to be used up within a short period, typically within a year. Instead of being capitalized, these items are typically expensed in the period they are purchased. This classification helps companies manage their financial statements by distinguishing between long-term capital assets and smaller, operational expenses. Examples include small tools, office supplies, and minor equipment.

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