An asset's capitalized cost basis includes only the actual purchase price; whereas expenses to purchase, prepare the asset for use, and begin using the asset are immediately expensed.

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An asset's capitalized cost basis includes not only the actual purchase price, but also expenses to purchase, prepare the asset for use, and begin using the asset. These expenses are not immediately expensed, but are instead capitalized and gradually depreciated over the useful life of the asset.

An Asset's Capitalized Cost Basis Includes Only the Actual Purchase