When a second-hand building is purchased which of these should not be debited to the building account but charged to a separate asset account?

Question

Quizplus · Accepted Answer

The cost of installing an air conditioning system should not be debited to the building account because it is considered a separate asset that adds value to the property independently of the building itself. It should be capitalized as a distinct asset in the air conditioning system account.

When a Second-Hand Building Is Purchased Which of These Should