On 1 July 2020 , Bryman Ltd , acquired a fully automated machine . However, its newly
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Question:
On 1 July 2020 , Bryman Ltd , acquired a fully automated machine . However, its newly appointed accountant is not sure about which of the following items should be capitalised and has asked for your advice as an experienced accountant. Explain with reasoning which of the following costs should or should not be capitalised.
1. The machine will be replaced in five years’ time and at that time the costs of dismantling and removal of the machine are expected to be $20,000 .
2. $10,000 spent on training the staff who will use the machine as its operation requires some technical knowledge .
Expert Answer:
1 Yes It will be capitalized the initial estimate of the costs of dismantling removing the item and ... View the full answer
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