Which of the following equipment related costs is not capitalized on a balance sheet? Equipment installation...
Which of the following equipment related costs is not capitalized on a balance sheet?
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Equipment installation costs.
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Equipment maintenance costs.
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The equipment's purchase price plus sales tax.
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Transportation costs associated with the equipment purchase.
Homework Answers
Option B
Equipment maintenance cost
As maintenance cost of equipment do not increase any future economic benefits, it is not capitalised and hence it is to be charged to income summary or revenue account.
Moreover maintenance cost or spent on equipment to maintain the same level of economic benefits.
So it is no way connected to capitalisation and no way connected to to appear in balance sheet.
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