Fixed Assets

[lochi.skit]

I have a question regarding expenses vs. capitalizing:

If a cigar shop wants to remodel the store, storage trucks with humidors in them must be rented to keep the inventory during the remodel.

Is the rental of the humidor trucks capitalized or expensed?

Thank you!

 

[kirby]

Expensed. The care of the cigars does not relate to the costs to improve the store.