In this lesson, Nick Palazzolo, CPA, breaks down the treatment of costs that occur after an asset has been acquired. He clarifies when to capitalize a cost versus when to recognize it as an expense. With a sharp focus on the criteria determining capitalization, such as whether a cost increases future benefits, he elaborates on different types of post-acquisition costs: additions, improvements, replacements, rearrangements, reinstallations, and repairs. Nick further elucidates how to evaluate these costs based on their impact on value, lifespan, and future productivity of the asset.