Costs that are directly attributable to the acquisition of investment property, such as legal and brokerage fees, property transfer taxes, should be capitalized as part of the cost of the investment property.

Question

Quizplus · Accepted Answer

These costs are directly associated with acquiring an investment property and therefore should be included in the capitalization of the asset's cost, enhancing the asset's value on the balance sheet.

Costs That Are Directly Attributable to the Acquisition of Investment