These are things I've read and heard, but you can never be 100% sure that the sources are right., if the source isn't Michael himself. An example: Jermaine said MJ's favourite colors were gold and red, Taraborrelli said in his book that it was yellow, so who are you going to believe...
GAAP, however, generally requires that these costs be expensed when incurred because it is difficult determine their future benefits and relation to future revenues (the matching principle). Unless there are large amounts of organizational expenses, they are usually expensed for GAAP and financial reporting purposes.
There are several layers of costs that must be treated as inventory. The Internal Revenue Service provides guidance under IRC Sec. 471 for the inclusion in inventory of direct costs and certain indirect costs. Direct costs are the costs of grapes, bottles, corks, labels, and direct labor. Indirect costs that are required to be included in inventory are certain repairs, maintenance, utilities, rent, indirect and supervisory labor, indirect materials and supplies, tools and equipment, and inspection.