[Anonymous]

How does a company account for a fixed asset constructed by the company for their own use?

– expense cost? and depreciate the asset?

[SRT8]

In this case, the company should capitalize the costs of the construction of the fixed asset that is to be used internally, such costs include direct materials and direct labor, repairs and maintenance expenses that add value tot the FA, overhead costs, and should capitalize interest that was incurred on money actually spent during construction.

AUD - 92 [5/31/11]
FAR - ___ [8/1/11]
BEC - 85 [8/31/11]
REG - ___ [10/17/11]

[Anonymous]

Thank you for your help

[Author]

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