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hi welcome to this quick tutorial about plant assets and the decision about whether to capitalize or expense the costs related to a plant asset first letamp;#39;s define plant assets plant assets are purchases or expenditures for items that are to be used in the organization for more than one operating period which is usually one year examples of plant assets include land land improvements buildings building improvements equipment and others the cost of a plant asset includes all normal and reasonable expenditures to obtain the asset and prepare it for use examples of costs include the purchase price transportation costs any installation cost sales and back property taxes and more so how do you decide if an expenditure expenditure should be capitalized or expensed the main question is whether the item is going to be consumed or used up within one year or less if the item will be consumed or used up within one year it will be expensed if it has an estimated useful life of greater than
