Which of the following is NOT included in the acquisition value of general PP&E?

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Multiple Choice

Which of the following is NOT included in the acquisition value of general PP&E?

Explanation:
Costs capitalized as general PP&E are those needed to acquire the asset and bring it to usable condition and location. This includes the purchase price plus costs to put the asset in service, such as transportation to the site and installation or commissioning expenses. Advertising costs, however, do not contribute to bringing the asset to use; they are selling or marketing expenses and are expensed as incurred. Therefore, advertising costs are not included in the acquisition cost of general PP&E.

Costs capitalized as general PP&E are those needed to acquire the asset and bring it to usable condition and location. This includes the purchase price plus costs to put the asset in service, such as transportation to the site and installation or commissioning expenses. Advertising costs, however, do not contribute to bringing the asset to use; they are selling or marketing expenses and are expensed as incurred. Therefore, advertising costs are not included in the acquisition cost of general PP&E.

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