Precision Inc. signed a contract with a vendor that allows the company to access its enterprise resource planning (ERP) system online. For accounting purposes, the arrangement is considered a service contract. Determine whether each of the following costs incurred by Precision Inc. should be expensed or capitalized:Costs IncurredExpense or Capitalize1. Fee charged for access to the software.Answer 1ExpenseCapitalize2. Costs of training employees to transition to the new system.Answer 2ExpenseCapitalize3. Compensation costs of employees for time spent coding and testing new system.Answer 3ExpenseCapitalize4. Fee paid to external contractors to assist with the implementation process.Answer 4ExpenseCapitalize5. Cost of evaluating dierent system options to determine the best t for the needs of the company.Answer 5ExpenseCapitalize6. Monthly security and maintenance fee paid to the vendor after system implementation.