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24 August, 04:17

Ace, Inc. just bought a new delivery truck. Which of these costs should be capitalized?1. The $500 for insurance on the truck for the next 12 months2. The $25,000 cost of the truck3. The $2,000 paid to install shelves inside the truck4. The $50 a week for gas to run the truck.

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  1. 24 August, 06:44
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    2. The $25,000 cost of the truck and 3. The $2,000 paid to install shelves inside the truck4.

    Explanation:

    The cost to be capitalized are those necessary to being the assets to a state and place where it becomes available for use.

    This cost includes the $25,000 cost of the truck and $2,000 paid to install shelves inside the truck.

    Other costs such as $50 a week for gas to run the truck and $500 for insurance on the truck for the next 12 months are to be expensed.
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