Solution-At what amount should the equipment be capitalized

At what amount should the equipment be capitalized

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Reference no: EM132681628

Question - Sandhill Ltd. purchased some new manufacturing equipment for use in its factory. Following is a list of the various items paid by Sandhill related to the equipment:

Item Amount

Purchase price of equipment $176,000

GST on equipment 8,800

Transportation to Sandhill's factory 24,500

GST on transportation 1,225

Cost of installation 80,500

GST on installation cost 4,025

Maintenance costs for first year 5,480

Insurance premiums for first year of use of machinery 1,150

Insurance premiums for transport of machinery 150

Required - At what amount should the equipment be capitalized on Sandhill's books? (Note: GST is refundable by the government.)

Reference no: EM132681628

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At what amount should the equipment be capitalized

Reference no: EM132681628

Reference no: EM132681628

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