What is included in the cost of acquiring a depreciable asset?

The correct choice encompasses all costs associated with acquiring a depreciable asset, which is critical for accurately determining its initial cost basis for depreciation purposes. When acquiring an asset, the total cost includes not only the purchase price but also any additional expenditures necessary to prepare the asset for its intended use. This can involve shipping costs to transport the asset to the location where it will be used, installation costs to properly set up the asset, as well as any other relevant expenses like taxes, legal fees, and any modifications needed to make the asset operational.

Including all these costs allows for a comprehensive understanding of the financial investment made in the asset. By factoring in these additional costs, organizations ensure they have accurately represented the true cost of acquiring the asset in their financial statements, which is essential for appropriate depreciation calculations and financial reporting.