Question: If your school has a subscription to the FASB Codification, prepare responses to the following.
(a) What does it mean to capitalize an item?
(b) What is the definition provided for an intangible asset?
(c) Your great-uncle, who is a CPA, is impressed that you are taking an accounting class. Based on his experience, he believes that depreciation is something that companies do based on past practice, not on the basis of authoritative guidance. Provide the authoritative literature to support the practice of fixed-asset depreciation.