USA Loan Fees Expensed or Capitalized?

[kdhcpa]

My company borrowed $2.5 million with the proceeds to be used to buy out a majority shareholder. There were fees associated with the loan of about $70,000 (material). The loan is a 10-year fixed rate loan with monthly payments, with real estate as collateral. Also, we borrowed $2 million to be used for general operating purposes. This is also a 10-year loan with monthly payments with equipment as collateral. The fees associated with this loan were about $81,000 (also material). My question is since the loan proceeds were not used for fixed asset purchases, should the related fees on both loans be expenses or capitalized?

 

[gazingov]

So there are 2 loans Correct? One to buy back stocks and one for the operation of the business
Stock is equity so the fee associated with that loan should be capitalized
The fees of the loan associated with the operation of the business should be expensed