Question: To make room for new equipment that it was installing, Sandwich Inc. had to knock down a wall. The cost of knocking down the wall

To make room for new equipment that it was installing, Sandwich Inc. had to knock down a wall. The cost of knocking down the wall was $32,000. While the installation was in progress, another wall was accidentally knocked down. The cost of replacing that wall was $44,000. Which, if any, of these costs should be capitalized? Explain.

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