On November 1, 2024, Abby Corp pays a $20,000 insurance premium to obtain an insurance policy with a 9 month term that begins on February 1, 2025. Should Abby capitalize the $20,000 payment? Please explain your answer. B. On November 1, 2024, Abby Corp pays a $20,000 insurance premium to obtain an insurance policy with a 12 month term beginning on March 1, 2025. Should Abby capitalize the $20,000 payment? Please explain your answer.

Answer rating: 100% (QA)

To determine whether Abby Corp should capitalize the 20000 insurance payment in both scenarios we need to consider the concept of capitalization and t... View the full answer