All of the following costs should be capitalized when equipment is acquired,except,
A)Purchase cost.
B)Sales taxes.
C)Transportation costs.
D)Legal fees.

Question

Quizplus · Accepted Answer

Legal fees are typically expensed when incurred and do not form part of the cost of equipment. The other options - purchase cost, sales taxes, and transportation costs - are all directly related to the acquisition of equipment and should therefore be capitalized.

All of the Following Costs Should Be Capitalized When Equipment