Module 2 Discussion

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Watch the following video about the construction of an Amazon fulfillment center and then answer the following question. Read the responses made by some of your peers and 'LIKE' the posts which you consider to have best answered the question. The top five posts with the most 'LIKES' will receive one bonus point.

Explain the general accounting principle of capitalizing costs with respect to long-term assets and whether the following costs should be capitalized as part of the cost of the fulfillment center:

• Road improvement costs (assume these are for private roads owned by Amazon)
• Staff hiring and training costs

Grading rubric:

Explanation of general accounting principles relating to cost capitalization	1.5 points
Application of accounting principles to road improvement costs	1 point
Application of accounting principles to staff hiring and training	2 points
Extract from the textbook, including page reference.	0.5 point
Total points	5 points

Your post should be about 200 to 250 words and should focus only on the accounting principles relevant to the scenario.

The video states the following: *Still in construction, Amazon's fulfillment center is located on E. Franklin Road near the Star Road Intersection. *The center's footprint is 650,000 square feet, but the multistory interior will provide 2.6 million square feet of floor space. * That's about the size of 15 Walmart Supercenters. *Amazon is expected to hire about 3,000 employees to staff the fulfillment center. *Employees will sort inventory that comes in from manufacturers and prepare it to be shipped out to customers. *The fulfillment center could generate up to 7,000 car trips per day. *The company is pitching in nearly $15 million to make road improvements around Nampa. *The fulfillment center is valued at just under $200 million and is expected to be completed in the Fall of 2020.