1. What about training employees to use a special piece of equipment, should this cost be expensed? Or should it be capitalized? What would the IRS like to be done?

2. If a company bought a building for $10 million, should they hire someone to look at the building and break it into separate parts - lights, elevators, heating units, etc. - to get a value on those individual assets. Keep in mind, different assets get different depreciation lives, especially for tax purposes. Would paying someone to do this be a benefit? Why or why not?

Answer rating: 100% (QA)

Typical capitalized costs include the costs associated with the purchase of equipment and property that is used over an extended period of time These costs are categorized as fixed assets and include ... View the full answer