Section 441.58 - Capitalize

441.58 Capitalize. (a) To record and carry forward into one or more future periods any expenditure, the benefits or proceeds from which will then be realized.

(b) To add to a fixed asset account the cost of plant additions, improvements and expenditures having the effect of increasing the efficiency or yield of a capital asset or making possible future savings in cost from its use.

(c) To transfer surplus to a capital-stock account, as the result of the issue of a stock dividend, a recapitalization, or, under the laws of some states, resolution of the board of directors.

(d) To discount or calculate the present worth of the projected future earnings of an asset or business.
 

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