(a) Costs of ownership of moveable equipment and personal property shall be allowable in the amount of depreciation and interest if the purchase is made through a multiple bid process. Depreciation shall be based upon the historical cost and useful life.

1. (1) If the equipment or personal property is purchased from a party not related to the provider or individual, the historical cost shall be the lesser of the actual cost of purchasing the equipment or personal property or the fair market value of such equipment or personal property.

2. (2) If the equipment or personal property is purchased from a party related to the provider or the individual, the historical cost shall be the least of:

   1. (i) actual acquisition cost;
   2. (ii) fair market value; or
   3. (iii) the seller's cost.
3. (3) The useful life is the higher of the reported useful life or the useful life as reported in the Estimated Useful Lives of Depreciable Hospital Assets, (2004 edition), published by Health Forum, Inc., an American Hospital Association company, One North Franklin, 28th Floor, Chicago, IL 60606-3421. A provider or individual may use a different useful life if such different useful life is approved by OPWDD. OPWDD shall base such approval upon historical experience and documentary evidence.
4. (4) The provider or individual shall use the straight-line, double declining balance or sum-of-the-years' digits depreciation method. Once selected, the depreciation method shall remain constant for the useful life of the asset.

(b) Costs of leasing moveable equipment and personal property shall be allowable as follows:

1. (1) If lease payments are made to a party which is not a related party, allowable costs shall be the lesser of:

   1. (i) actual lease payments; or
   2. (ii) fair market rental.

2. (2) If lease payments are made to a related party, allowable costs shall be the least of:

   1. (i) actual lease payments;
   2. (ii) fair market rental; or
   3. (iii) allowable depreciation, the associated interest expense, if any, and other related expenses, including, but not limited to, maintenance costs.