Solution-What amount should be capitalized as the cost of

What amount should be capitalized as the cost of equipment

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Reference no: EM132771547

Problem - Sunflower Company acquired some new equipment. The following data have been made available to you:

List price of the equipment 14,000

Cash discount available but not taken on purchase 200

Freight paid on the new equipment 250

Cost of removing the old equipment 170

Installation cost of the new equipment 430

Testing cost before the equipment was put to regular operation (including 120 in wages of the regular equipment operator) 295

Loss on premature retirement of the old equipment 120

Estimated cost of manufacturing similar equipment in the company's own plant including overhead 13,800

Required - What amount should be capitalized as the cost of the new equipment?

Reference no: EM132771547

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What amount should be capitalized as the cost of equipment

Reference no: EM132771547

Reference no: EM132771547

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