At the time of capitalization of the costs incurred in the construction of the asset,expenses pertaining to the new asset must go through the income statement.

Question

Quizplus · Accepted Answer

When costs are capitalized, they are added to the cost of the asset and are not expensed through the income statement. Instead, the costs are depreciated over the useful life of the asset.

At the Time of Capitalization of the Costs Incurred in the Construction