7.  Property and Equipment As at December 31, 2013 December 31, 2012 Cost Accumulated  Depreciation cost accumulated  Depreciation land $270 $‑ $270 $‑ Building 1,824 106 1,763 54 Heavy equipment 198 71 622 220 Vehicles 1,191 308 1,076 273 Furniture, fixtures and equipment 3,588 2,451 3,181 2,052 leaseholds 428 36 261 ‑ 7,499 2,972 7,173 2,599 Less: accumulated depreciation (2,972) (2,599) $4,527 $4,574 Land and building represents the Company’s ownership of a 50% interest in the land and building that its head office occupies. Under IFRS,  owner‑occupied property is required to be accounted for as property and equipment and not investment property. Property with a fair  value of $4.2 million (December 31, 2012 ‑ $4.2 million) is pledged as collateral against the Company’s mortgages payable. For the years ended December 31, 2013 2012 Balance, beginning of year $4,574 $4,457 Disposals (420) (107) Capital expenditures 963 764 Depreciation (590) (540) Balance, end of year $4,527 $4,574 8.  Rent and Other Receivables As at December 31,  2013 December 31,  2012 rent receivable $879 $926 insurance receivable 337 254 other receivables 1,535 2,587 $2,751 $3,767 Included in other receivables are laundry revenue, commission revenues and other non‑rental income. The majority of these receivables  are less than 60 days old.  The Company’s policy is to write‑off tenant receivables when the tenant vacates the unit and any subsequent receipt of funds is netted  against bad debts. The Company’s bad debt expense experience has historically been less than 0.4% of revenues. As a result of the low  bad debt experience, no allowance for doubtful accounts is recorded in the accounts.  9. Inventory Inventory relates to manufactured homes for which sales have not closed at year‑end, as well as four stock homes (2012 ‑ eight stock  homes) and related expenses. As at December 31, 2013, no amount of the inventory is pledged as collateral related to short‑term or  long‑term financing. 82  Killam ProPerties inc | 2013 Notes to the Consolidated Financial Statements Dollar amounts are in thousands of Canadian dollars (except share and per share amounts)