Final answer:
The amount to be capitalized for the shed includes all costs associated with its construction, akin to determining needed capitalization for a theatre production as described by Hal Luftig. It encompasses materials, labor, permits, and any other related expenses.
Step-by-step explanation:
When tasked with computing the amount to be capitalized for the shed, it's important to understand that capitalization in a business context often refers to the total cost involved in a project before it becomes operational. In the words of producer Hal Luftig, this involves calculating what it will cost to produce a show or determine the needed capitalization. While he refers to theatre production, the same principles apply to capital projects in a variety of contexts, including the construction of physical assets like a shed.
To ascertain this number, one must consider all the associated expenses ranging from the materials and labor to any permits or fees required. This would typically include the cost of building materials, labor charges, contractor fees, and any other expenses directly related to the creation and completion of the shed.
The amount to be capitalized is thus the aggregation of all these costs. It represents the investment made to bring the shed project to completion and ready for use, aligning with Hal's approach to theatre productions where every aspect of the production from set design to opening night contributes to the total capitalization required.