Cost of the Tangible Asset Land Purchase Price Legal Fees Survey Fees Title Search Fees Broker Commissions Cost of the Tangible Asset Buildings Purchase Price Construction Cost Legal Fees Appraisal Fees Architect Fees Broker Commissions Equipment Capitalized cost of the asset Purchase Price Construction Cost Sales Taxes Transportation Costs Installation Costs Demolition, renovation, or repair costs to get the asset ready for its intended use are also capitalized Capitalized costs = All costs for acquiring and preparing tangible asset for use Knowledge Check 01 Silver Company purchased a machine for use in the business. The purchase price was $55,000 and the related sales tax totaled $500. Sliver paid $1,000 to have the machine delivered to its factory and $2,000 to have it assembled. Over the five-year life of the machine, maintenance cost of $800 will be incurred annually. What is the capitalized cost of this asset?