Ask Question
11 November, 09:50

Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the following costs were incurred:

Acquisition cost 30,000, Sales tax 1,800, Title transfer 250, paid to the company logo on the van 1,200, and two-year service contract 1,600.

Which of these costs would not be included in the capitalized cost of the asset?

+1
Answers (1)
  1. 11 November, 09:54
    0
    Company logo cost and the two year service contract

    Explanation:

    The capitalized cost of the asset includes those costs that is shown on the asset side of the balance sheet.

    In the given scenario, the capitalized cost includes acquisition cost, sales cost, and the title transfer fee

    But the cost that is not capitalized and is not reflected on the balance sheet is a company logo on the van and the two-year service contract
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Dougherty Corporation purchased a new delivery van for use in its dry-cleaning business. As part of the purchase of the van the following ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers