Determine the cost basis for these cells

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A company bought three flexible manufacturing cell at a price of $400,000 each. when they were delivered, company paid freight charge of $30,000 and handling fees of $15,000. Site preparation for these cells cost $50,000. Six employees, each earning $15 an hour, worked five 40-hour weeks to set up and test the manufacturing cells. Special writing and other materials applicable to the new manufacturing cell cost $2,000. Determine the cost basis (the amount to be capitalized) for these cells.

Reference no: EM13976341

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