The Equipment account would include all of the following costs except
A)installation costs.
B)maintenance costs.
C)equipment test runs.
D)freight charges.

Question

Quizplus · Accepted Answer

Maintenance costs are considered operational expenses and are not capitalized as part of the equipment cost on the balance sheet. Installation costs, equipment test runs, and freight charges are capitalized as they are necessary to bring the asset to a condition and location ready for use.

The Equipment Account Would Include All of the Following Costs