These costs incur only at the initial recognition of machinery and equipment. In other words, for the first recognition of these assets, expenditures made for bringing them to their initial use are capitalized. Assume that the machinery has been installed and the company is using them. After three years of using, the company needs to move and settle to a new location. In this case, the expenditure for disassembling and reassembling the machinery, transportation charges, insurance during transportation, etc. will not be capitalized. They will be recorded as period expenses. The correct answer is A.