Architect's fees during construction of a building should be:
A)capitalized
B)expensed immediately
C)treated as a revenue expenditure
D)expensed at the completion of construction

Question

Quizplus · Accepted Answer

The architect's fees during construction should be capitalized as part of the cost of the building. This is because the fees are directly related to the construction process, and are necessary for the completion of the building. By capitalizing the fees, they become part of the cost of the building and are depreciated over its useful life. This helps to ensure that the cost of the building is accurately reflected on the financial statements.

Architect's Fees During Construction of a Building Should Be