QS 8-1 (Algo) Cost of plant assets LO C1 Kegler Bowling buys scorekeeping equipment with an invoice cost of $170,000. The electrical work required for the installation costs $17,850. Additional costs are $3,570 for delivery and $12,250 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,650. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost- Amount $ 170,000 17,850 3,570 12,250 1,650 Included or Excluded Account

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QS 8-1 (Algo) Cost of plant assets LO C1
Kegler Bowling buys scorekeeping equipment with an invoice cost of $170,000. The electrical work required for the installation costs
$17,850. Additional costs are $3,570 for delivery and $12,250 for sales tax. During the installation, the equipment was damaged and
the cost of repair was $1,650
Required:
Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred.
Costs
Invoice cost
Electrical work required for installation
Delivery costs
Sales tax
Repair costs
Total recorded cost
Amount
$
170,000
17,850
3,570
12,250
1,650
Included or
Excluded
Account
Transcribed Image Text:QS 8-1 (Algo) Cost of plant assets LO C1 Kegler Bowling buys scorekeeping equipment with an invoice cost of $170,000. The electrical work required for the installation costs $17,850. Additional costs are $3,570 for delivery and $12,250 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,650 Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ 170,000 17,850 3,570 12,250 1,650 Included or Excluded Account
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