In purchase accounting, all out-of-pocket costs incurred as a result of a business combination can be added to the cost of the acquisition.

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In purchase accounting, not all out-of-pocket costs incurred as a result of a business combination are added to the cost of the acquisition. Direct costs related to the acquisition can be capitalized, but indirect costs must be expensed as incurred.

In Purchase Accounting, All Out-Of-Pocket Costs Incurred as a Result