Question: Great Harvest Bakery purchased bread ovens from New Morning Bakery. New Morning Bakery was closing its bakery business and sold its two-year-old ovens at a discount for $600,000. Great Harvest incurred and paid freight costs of $30,000, and its employees ran special electrical connections to the ovens at a cost of $4,000. Labor costs were $32,800. Unfortunately, one of the ovens was damaged during installation, and repairs cost $4,000. Great Harvest then consumed $800 of bread dough in testing the ovens. It installed safety guards on the ovens at a cost of $1,400 and placed the machines in operation.
Required: 1. Prepare a schedule showing the amount at which the ovens should be recorded in Great Harvest's Equipment account.
2. Indicate where any amounts not included in the Equipment account should be recorded.