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hi everyone in this video im going to walk you through capitalizing capitalizing expenditures related to equipment so when it comes to equipment what are you allowed to include in the historical cost in the capitalized cost of that equipment well obviously the sticker price whatever you have to actually pay to buy the equipment if you have to pay any sales taxes on top of that sticker price just like you would pay sales taxes say um if you uh went and bought a burger from mcdonalds you know you you if it was a dollar burger youd pay like say a dollar nine right because theres taxes any sales taxes get to get capitalized into the equipment account if you pay for shipping that equipment to you what they call freight that gets to be put into the equipment account if you end up buying any insurance during that shipping that goes into the equipment account and if you have to do any assembly installation or testing prior to use that can also go into the equipment account just like the g