Respuesta :
The purchase price and all costs to bring an asset to its desired condition and location for use should be capitalized.
- To capitalize in business is simply known as to record a cost or expense. This is done on the balance sheet. The capitalization of expenses is important as firms acquiring new assets with long-term bases can amortize or depreciate the costs.
The costs that we have to capitalize when purchasing assets is the cost of the item or fixed asset.
Conclusively we can therefore say that purchase price and all costs to bring an asset to its desired condition is to capitalize them as it is the best thing to do.
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