WAC 388-835-0510. What is the depreciation base of a tangible asset?

(1) The depreciation base of a tangible asset is the asset's historical cost at the time it is acquired by the provider in an arm's length transaction: (a) Plus the cost of preparing the asset for use; (b) Less the asset's estimated salvage value, if any, where the straight-line or sum-of-the-years digits methods of depreciation is used; (c) Less any goodwill; and (d) Less any accumulated depreciation incurred during periods the asset was used by the provider personally or in another business. (2) When depreciable assets are acquired from a related organization, the provider's depreciation base cannot exceed the base the related organization had or would have had under a contract with DSHS.