Under the cost principle, what amounts should be included in the acquisition cost of a long lived asset?

Under the cost principle, what amounts should be included in the acquisition cost of a long lived asset?



When a long-lived asset is acquired, it is recorded in the accounts in conformity with the cost principle. That is, the acquisition cost of a long-lived asset is the cash equivalent price paid for it plus all incidental costs expended to obtain it, to place it in the location in which it is to be used, and to prepare it for use.


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