In this lesson, follow along as Nick Palazzolo, CPA, dives into the nuts and bolts of accounting for equipment costs. Tackling everything from initial invoice prices to the nitty-gritty details like freight and installation charges, he lays out the components that makeup acquisition or construction costs. With straightforward, real-world scenarios, Nick illustrates how to handle various expenses, including sales tax and potential construction interest. He also delves into the costs associated with self-constructed assets, parsing out materials, labor, and a portion of fixed overhead, and not forgetting the ever-relevant interest during construction. The lesson wraps up with a practical breakdown of when to capitalize versus expense improvements and repairs, helping to clarify this vital area of asset accounting.