Question

Explain why the expenses incurred to get an asset in place and operable should be included in the assets basis. Please explain in-depth.

Answer 1

Any expenses which are in recurring in nature called as revenue expenses

Any expenses which incurred one time in nature on any Assests are capital expenses these expenses should should not Debit to profit or loss Account.

Expenses incurred on Assest to get ready for it's intended use are one time in nature so these expenses are capitalize along with Assests cost. Without incurring these expenses we can't get Assests for it's intended use and one time in nature capitalize these expenses