On September 10, 2020, Vaughn Manufacturing incurred the following costs for one of its printing presses: Purchase of attachment   $58500 Installation of attachment   5400 Replacement parts for renovation of press   15200 Labor and overhead in connection with renovation of press   6500 Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized?     $85600.   $0   $79100.   $70400.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On September 10, 2020, Vaughn Manufacturing incurred the following costs for one of its printing presses:

Purchase of attachment   $58500
Installation of attachment   5400
Replacement parts for renovation of press   15200
Labor and overhead in connection with renovation of press   6500


Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized?


 

 

$85600.

 

$0

 

$79100.

 

$70400.
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