Discussion:Capitalize Package desisn?

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Discussion Forum Index --> Accounting Questions --> Capitalize Package desisn?

Smsacct (talk|edits) said:

12 November 2007
Client of mine spent 25K on new design, artwork, ad slicks etc for new packaging of his product. My question is should this 25K in design cost be capitalized and amortized or simply written off as a current expense?

BEGooding (talk|edits) said:

November 12, 2007
I vote capitalize.

DerekCPA (talk|edits) said:

14 November 2007
I'd vote advertising expense

Proptaxguy (talk|edits) said:

14 November 2007
Since this appears to be an existing business I agree with Derek and say expense.

Pegoo (talk|edits) said:

15 November 2007
Marketing Expense.

BethAZ (talk|edits) said:

15 November 2007
I'd vote to determine which costs will recur in the next year for the same design item. Logo design would not usually recur. Ad slicks probably will. Packaging design costs might. Artwork might not.

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