CAPITALIZABLE COSTS

1. Land
a. Legal fees for purchase contract and recording ownership
b. Option fee for land acquired
c. Title search
d. Delinquent property taxes (may be allocated to building)
e. Escrow fees (may be allocated to building)
f. Commission of real estate agent (may be allocated to building)
g. Title guarantee insurance
h. Title clearance fee
i. Special assessment for pavement, sewers, etc
j. Cost of grading, leveling and landfill
k. Clearing of trees, net of salvaged amount
l. Land survey
m.
2. Building
a. Architect fee
b. Safety fence for construction, as well as its removal
c. Safety inspection
d. Temporary building for construction
e. Delinquent property taxes (may be allocated to land)
f. Escrow fee (may be allocated to land)
g. Commission of real estate agent (may be allocated to land)
h. Construction cost
i. Remodeling and repairs prior to occupancy
j. Insurance during construction
k. Excavation cost
l. Building permit
m. Borrowing cost
n. Driveways if part of blueprint
o. Salaries of management for supervision of construction
p. Payment to tenants for vacating old building
q. Demolition cost
3. Equipment
a. Construction of platform and safety rails
b. Freight
c. Custom duties and other charges
d. Installation and test run
e. Inspection prior to use
f. Future dismantling costs (ARO)
 g. Machine refurbishment, repairs and overhaul prior to installation
h. Consultants used for advice on acquisition

Subsequent Expenditures
1. Capitalize if it would extend life of the asset or it would improve productivity
2. Expense if otherwise (expense if it would only restore the asset to its original capacity)