In the context of building construction, which expense is capitalizable?

In the context of building construction, architect fees are considered capitalizable expenses because they are directly associated with the construction project and help in the creation of a long-term asset. Architect fees typically involve costs for designing the building, preparing plans and specifications, and overseeing construction, which are integral to bringing the asset to its intended condition for use.

Capitalizable expenses are those that provide future economic benefits and are added to the cost of a long-term asset rather than being expensed in the period incurred. Architect fees enhance the value of the building and contribute to its functionality, thus qualifying as part of the capitalized costs of the construction project.

In contrast, the other choices represent costs that do not enhance the building's value or contribute directly to creating a new asset. Office supplies, for example, are general operational expenses that are consumed in the short term and do not contribute to the long-term asset. Insurance premiums on equipment, while important for protecting assets, are considered regular operational expenses and not part of the asset's acquisition cost. Routine landscaping typically involves maintenance or upkeep rather than initial construction, and therefore, would be classified as a period expense rather than a capitalizable cost.