Q:
Catherine Simpkins owns and operates Speedy Print Co. Through February, Speedy Print Co. incurred the subsequent costs in acquiring two printing presses. One printing press was new, and the other was used by a business that currently filed for bankruptcy. Costs related to new printing press:
1. Sales tax on purchase price
2. Freight
3. Special foundation
4. Insurance while in transit
5. New parts to replace those damaged in unloading
6. Fee paid to factory representative for installation
Costs related to used printing press:
7. Fees paid to attorney to review purchase agreement
8. Freight
9. Installation
10. Repair of vandalism during installation
11. Replacement of worn-out parts
12. Repair of damage incurred in reconditioning the press
a. Show which costs incurred in acquiring the new printing press could be debited to the asset account
b. Show which costs incurred in acquiring the used printing press could be debited to the asset account