Determine the capitalized cost of the equipment


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 costs 5,600
Insurance while in transit 800
Insurance after equipment is placed in service 1,200
Installation costs 2,000
Testing, including $300 of spoilage 700

Determine the capitalized cost of the equipment.

 

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Accounting Basics: Determine the capitalized cost of the equipment
Reference No:- TGS065713

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