Determine the capitalized value of artificial intelligent

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Reference no: EM132760942

Harris Led had wrongly specified the power loading of the original electrical cable to be installed by the contractor. The cost of rectifying this error of $12,000 is included in the above figure of $28,000. The machinery is expected to have a useful life of 20 years. At the end of this period there will be compulsory costs of $30,000 to dismantle the machinery and $6,000 to restore the site to the original condition.

Required:

Problem 1: Determine the capitalized value of the artificial intelligent machinery in the financial statements of Harris Ltd.

 

Problem 2: Explain the treatment in the financials to be given to any cost or item not utilized in computing the capitalized value of the machinery.

Reference no: EM132760942

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