Question

What original costs are involved in purchasing an asset and putting it into use?

Choose 2

A. Taxes paid while in stock
B. Taxes paid
C. Taxes paid at the time of purchase
D. Taxes paid on storage

Answer 1

The original costs involved in purchasing an asset and putting it into use include taxes paid at the time of purchase and taxes paid on storage.

Step-by-step explanation:

When purchasing an asset and putting it into use, there are two original costs involved:

1. Taxes paid at the time of purchase: These are taxes that are paid when the asset is initially acquired, such as sales taxes or value-added taxes. These taxes are added to the cost of the asset.
2. Taxes paid on storage: Depending on the asset, there may be taxes or fees associated with storing or maintaining the asset. For example, if the asset requires a warehouse or storage facility, property taxes may apply.