When capitalizing the cost of a purchased asset, all of the following cost should be included in capitalization except for:
A)the full purchase price plus any discounts
B)set up costs
C)legal costs
D)shipping costs

Question

Quizplus · Accepted Answer

The full purchase price should be capitalized, but any discounts received should actually reduce the capitalized cost, not increase it.

When Capitalizing the Cost of a Purchased Asset, All of the Following