The Great Migration, or the relocation of more than 6 million African Americans from the rural South to the cities of the North, Midwest and West from 1916 to 1970, had a huge impact on urban life in the United States.
With the traditional perpetual license purchase of software, the rules are easier to apply. Clearly, the cost of the license can be capitalized and amortized over a useful life period (five years typically). Some of the implementation costs, which are usually billed by the vendor or third-party can be capitalized. Software development is the key term that would include creating the chart of accounts and customizing components of the software to function effectively for the organization and testing.
Capitalizing Expenses. When you capitalize an expense and then amortize the costs, you spread the cost over an extended period of time. Suppose you decide to amortize a $60,000 expense over a five-year period.You would record $60,000 to an asset account and offset it with a $60,000 credit to notes payable or cash.All of these are balance sheet accounts, so you have not yet affected your income statement.apitalizing Expenses. When you capitalize an expense and then amortize the costs, you spread the cost over an extended period of time. Suppose you decide to amortize a $60,000 expense over a five-year period.