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What amount should donald corp capitalize as the cost

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Reference no: EM132761504

On January 2, 2019, Donald Corp. replaced its boiler with a more efficient one. The following information was available on that date:

Purchase price of new boiler €150,000
Carrying amount of old boiler €10,000
Fair value of old boiler €4,000
Installation cost of new boiler €20,000

The old boiler was sold for €4,000.

Problem 1: What amount should Donald Corp. capitalize as the cost of the new boiler?

Reference no: EM132761504

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