The installation costs for a new machine should be part of the cost of the machine and depreciated.

Question

Quizplus · Accepted Answer

Installation costs for a new machine are a necessary expense directly related to acquiring and putting the machine into service. Therefore, these costs should be included as part of the cost of the machine and depreciated over its useful life. This is in accordance with generally accepted accounting principles (GAAP).

The Installation Costs for a New Machine Should Be Part