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Question - Sydney Lanes, a local bowling alley, installed automatic scorekeeping equipment. The electrical work required to prepare for the installation was $XXX. The invoice price of the equipment was $XXX.
Additional costs were $XXX for delivery and $XXX for insurance during transportation. The company also paid $XXX in additional annual insurance premiums for the new equipment. During the installation, a component of the equipment was damaged because it was carelessly left on a lane and hit by the automatic lane cleaning machine. The cost of repairing the component was $XXX.
Which items should be included
Electrical work $18,650
Invoice price of the equipment $179,350
Delivery $3,000
Insurance during transportation $600
Annual insurance premium $350
Repair cost $2,900
What is the cost that should be capitalized for the automatic scorekeeping equipment?
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