Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $180,000. Since the company made a cash payment, a discount of $9,000 is received in the purchase. Shipping costs were $4,600, which included $200 for insurance in transit. Installation costs totaled $12,000, which included $4,000 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. Insurance expenses paid for the first year is $10,000. The capitalized cost of the ten-ton draw press is:

Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $180,000. Since the company made a cash payment, a discount of $9,000 is received in the purchase. Shipping costs were $4,600, which included $200 for insurance in transit. Installation costs totaled $12,000, which included $4,000 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. Insurance expenses paid for the first year is $10,000. The capitalized cost of the ten-ton draw press is:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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