Problem
Marlee Limited purchased a machine on March 31 for $78000, paying cash. The company also paid $600 for freight, $500 for installation and testing, $900 for employee training, $800 for supplies to be used in production, and $2400 for a one-year insurance policy. The machine has a residual value of $8000 and a useful life of 6 years.
What is this machine's acquisition cost?