Question:
Mad Hatter Enterprises purchased new equipment for $365,000, FOB shipping point. Other costs connected with the purchase were as follows:
State sales tax $29,200 Freight cost $5600 Insurance while in transit $800 Insurance after equipoment placed inservice $1200 Installation Cost $2000 Testing, including $300 of spoilage $700
Required:
Determine the capitalized cost of the equipment.