How to record capitalization of elevator install
Records the cost of installing a new elevator system as a building improvement.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Buildings (Elevator System) | Asset | 85,000.00 | - |
| Cash | Asset | - | 85,000.00 |
💡 Accountant's Note
Cost of major structural additions like elevators are capitalized as they increase the value and utility of the building.
Practitioner & Systems Framework
💻 ERP Architecture
Set up as a sub-asset of the main building or a separate asset for different depreciation life.
⚠️ Audit Flags
Verification of whether the installation is a repair or a capital improvement.
📄 Required Documentation
Contractor invoice and certificate of completion.
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