To determine how much Rain should capitalize as a noncurrent asset in relation to this purchase, we should consider all costs directly related to acquiring and making the laptop functional for the business. Typically, this includes the purchase price of the laptop, additional equipment (like the monitor and keyboard), delivery fees, and any necessary software configuration or installation costs. Administrative overheads and sales tax (VAT) should not be included in the capitalization as they are considered operating expenses or recoverable tax, respectively.

Costs to capitalize:

• Laptop computer: €2,310
• Additional monitor and keyboard: €110
• Delivery: €50
• Initial configuration of software: €90

Total capitalization: €2,310 + €110 + €50 + €90 = €2,560

The VAT and administration overheads are excluded from the capitalization. Thus, Rain should capitalize €2,560 as a noncurrent asset.

Would you like further details or have any questions?

Here are some related questions to expand on:

1. What are noncurrent assets and how do they differ from current assets?
2. Can VAT ever be capitalized in any situation?
3. Why are administrative overheads not included in the capitalization of assets?
4. How would the capitalization amount change if Rain was not VAT registered?
5. What is the significance of initial software configuration in asset capitalization?

Tip: Always exclude recoverable taxes like VAT from capitalized costs when dealing with a VAT-registered entity.