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A company imported two machines to be installed in its new factory by bank loan:
1) Both expenses should be capitalized by adding them to the original cost.
2) Both expenses must be charged to the income statement.
3) Interest may be capitalized while transport expenses should be considered as expenses in the statement of income.
4) Transport expenses must be capitalized by adding them to the cost of the asset and interest can not be capitalized in light of these circums
1) Both expenses should be capitalized by adding them to the original cost.
Transport expenses must be capitalized by adding them to the cost of the asset and interest can not be capitalized in light of these circums
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