Branson Corp. purchased a new machine for its business. The following list shows the various expenditures for the machine during its first year: • Base purchase price, $75,000 • Insurance costs incurred while the machine was being shipped, $500 • Sales tax incurred at the time of purchase, $3,000 • Installation charges for the machine, $2,000 Ordinary repairs and maintenance costs during the first year of the machine's service life, $2,000 • Insurance costs for the first year of the machine's service life, $1,000 ● Question: What should be the capitalized cost of the machine? Do not use symbols or cents in the numerical response. Answer: $
Branson Corp. purchased a new machine for its business. The following list shows the various expenditures for the machine during its first year: • Base purchase price, $75,000 • Insurance costs incurred while the machine was being shipped, $500 • Sales tax incurred at the time of purchase, $3,000 • Installation charges for the machine, $2,000 Ordinary repairs and maintenance costs during the first year of the machine's service life, $2,000 • Insurance costs for the first year of the machine's service life, $1,000 ● Question: What should be the capitalized cost of the machine? Do not use symbols or cents in the numerical response. Answer: $
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 4PA: During the current year, Arkells Inc. made the following expenditures relating to plant machinery. ...
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![Branson Corp. purchased a new machine for its business.
The following list shows the various expenditures for the machine during its first year:
• Base purchase price, $75,000
• Insurance costs incurred while the machine was being shipped, $500
• Sales tax incurred at the time of purchase, $3,000
• Installation charges for the machine, $2,000
Ordinary repairs and maintenance costs during the first year of the machine's
service life, $2,000
• Insurance costs for the first year of the machine's service life, $1,000
●
Question: What should be the capitalized cost of the machine? Do not use symbols or
cents in the numerical response.
Answer: $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F78a71c06-b101-405f-9f1c-5d16a9da7417%2F3f13a232-bcec-4ae8-bc36-f352a5f450d2%2Fnf4anns_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Branson Corp. purchased a new machine for its business.
The following list shows the various expenditures for the machine during its first year:
• Base purchase price, $75,000
• Insurance costs incurred while the machine was being shipped, $500
• Sales tax incurred at the time of purchase, $3,000
• Installation charges for the machine, $2,000
Ordinary repairs and maintenance costs during the first year of the machine's
service life, $2,000
• Insurance costs for the first year of the machine's service life, $1,000
●
Question: What should be the capitalized cost of the machine? Do not use symbols or
cents in the numerical response.
Answer: $
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