All of the following are included in the acquisition cost of property,plant,and equipment except
A)transportation costs.
B)taxes on the purchase.
C)installation costs.
D)maintenance costs.

Question

Quizplus · Accepted Answer

Maintenance costs are not included in the acquisition cost of property, plant, and equipment. The acquisition cost consists of the purchase price, transportation costs, taxes on the purchase, and installation costs. Maintenance costs are incurred after the asset has been acquired and are expensed as they occur.

All of the Following Are Included in the Acquisition Cost