Solved: What is amount york capitalize the cost of new boiler, Corporate Finance

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What is amount york capitalize the cost of new boiler

Assignment:

On January 2, 2012, York Corp. replaced its boiler with a more efficient one. The following information was available on that date:

Purchase price of new boiler $170,000

Carrying amount of old boiler 10,000

Fair value of old boiler 4,000

Installation cost of new boiler 20,000

The old boiler was sold for $4,000. What amount should York capitalize as the cost of the new boiler?

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Corporate Finance: What is amount york capitalize the cost of new boiler

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