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ABC INC purchased new machinery in order to improve its production process. Classify each of the following expenditures incurred last year as a capital expenditure (CE) or an immediate expense (IE).
a. $4,200 purchase price.b. $2,520 sales tax paid on the purchase price.c. $4,000 transportation cost.d. $1,850 installation.e. $385 training of personnel for initial operation of the machinery.f. $6,855 for wages paid to employees that operated the machinery during production.g. $280 lubrication after the machinery is placed in service.h. $150 ordinary repairs to maintain the machinery in working order.Give the value of the new machinery, and list the financial statement in which it will be shown at fiscal year.
Financial Statement Analysis and Preparation
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