Tyco paid dealers to sell security systems and then capitalized the cost of the acquisition....

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Accounting

Tyco paid dealers to sell security systems and then capitalized the cost of the acquisition. What were the two (2) issues with this?
It didn't account for administrative expenses which should not be capitalized.
It didn't account for advertising expenses which should not be capitalized.
None of these expenses should have been capitalized.
It didn't account for equipment expenses which should not be capitalized.

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