A fixed asset's cost base on a company's balance sheet is increased by an expense known as a Capitalized Cost. For example, if a company purchases land for $10,000 and subsequently spends an additional $1,000 to develop the land, that $1,000 would be capitalized as part of the cost basis of the land. This means that it would be amortized (or depreciation) over time as part of the overall expense associated with owning the land.There are several benefits to capitalizing costs related to fixed assets. First and foremost, doing so allows companies to more accurately track their expenses related to these assets. Additionally, it can help them make better business decisions by providing more accurate information about how long it will take for certain investments to pay off. Finally, it also helps ensure that companies comply with Generally Accepted Accounting Principles (GAAP).