When a second-hand building is purchased which of the following should be recognised in a separate asset account instead of being debited to the building account?

Question

Quizplus · Accepted Answer

The cost of installing an air conditioning system should be recognized in a separate asset account because it represents a distinct asset that provides future economic benefits and can be depreciated over its useful life, separate from the building itself. Legal fees and stamp duty are directly associated with the acquisition of the building and are thus capitalized as part of its cost. Initial repairs to make the building usable are also considered part of the building's acquisition cost.

When a Second-Hand Building Is Purchased Which of the Following