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Problem 1: Grover Co. installed new assembly line production equipment at a cost of $180,000. Grover had to rearrange the assembly line and remove a wall to install the equipment. The rearrangement cost $15,000 and the wall removal cost $5,000. The rearrangement did not increase the life of the assembly line, but it did make it more efficient. What amount of these costs should be capitalized be Grover?
Option 1: $195,000
Option 2: $200,000
Option 3: $180,000
Option 4: $185,000
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