Expense or Asset?

Partnership
#1

Expense or Asset?

11-23-2006, 01:15 AM

We borrow $10,000 to purchase an office $9,000 and architect fees $500.

Architect fees is expense or asset?

Assuming we use accrual basis accounting
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Jiggers

Senior Member

Join Date: Sep 2005

Posts: 1973
#2

11-23-2006, 07:04 AM

Asset

Originally posted by Partnership

We borrow $10,000 to purchase an office $9,000 and architect fees $500.

Architect fees is expense or asset?

Assuming we use accrual basis accounting

The architect fees are added to the basis of the office. It doesn't matter if you use the accrual or cash basis of accounting.

Jiggers, EA
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