The cost of acquiring an asset includes the costs necessary tobring it to the...

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Accounting

The cost of acquiring an asset includes the costs necessary tobring it to the condition and location necessary for its intendeduse. there are four stages during which costs can be incurredrelated to fixed assets:
·         Preliminarystage,
·        Pre-acquisition stage,
·         Acquisition orconstruction stage (herein referred to as the constructionstage),
·         In-servicestage
Please, provide a summary of some types of costs incurred duringall stages of construction or acquisition of a capitalasset/project. Discuss what sort of costs can be capitalized duringeach of the stages.

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Summary of some types of costs incurred during all stages of construction or acquisition of capital asset project Stage 1 Preliminary Stage Preliminary Stage of the asset is the very first step of acquiring the asset The expenses incurred during this stage is for the purpose of acquiring the asset and before acquiring the asset During this stage the pros and cons of purchasing or constructing the asset are studied Examples of preliminary stage costs are cost of surveys cost of See Answer

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In: AccountingThe cost of acquiring an asset includes the costs necessary tobring it to the condition...The cost of acquiring an asset includes the costs necessary tobring it to the condition and location necessary for its intendeduse. there are four stages during which costs can be incurredrelated to fixed assets:· Preliminarystage,· Pre-acquisition stage,· Acquisition orconstruction stage (herein referred to as the constructionstage),· In-servicestagePlease, provide a summary of some types of costs incurred duringall stages of construction or acquisition of a capitalasset/project. Discuss what sort of costs can be capitalized duringeach of the stages.