Learning Goal: I’m working on a accounting case study and need an explanation an

Learning Goal: I’m working on a accounting case study and need an explanation and answer to help me learn.Mindy Esquivel owns a bakery that serves both commercial and retail customers. The bakery is located in the southernmost area of a large metropolitan city. The business has enjoyed great success and customers frequently ask Mindy if she will be opening a bakery more toward the center of the city. Evidently, they are not enjoying the long drive to her current location. After hearing this for several years, she began a search for a site to build the new bakery. Prior to starting the project, Mindy contacted you as her CPA to determine a cost capitalization policy. Mindy asks that the policy include at what point, and which costs may be capitalized as part of the new-build construction project. She has provided a list of costs she knows will be incurred so be sure to address each of them.Architect fees
Labor and materials used in construction
Mindy’s own salaried project manager, Ray, who will oversee construction (hired for this project only)
Preliminary site selection costs including labor hours incurred by Ray
External legal fees related to property acquisition, construction contract review, etc.
Costs to paint the new bakery
Any other costs she might incur during this new-build construction project
No need to do a memo for this – just prepare the capitalization policy for her.Be sure to cite appropriate substantial authority. Also, you might find PwC’s guidebook “Property, Plant, & Equipment” helpful. (The guidebook is posted in this module.)
Requirements: Any

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