Question

Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $460,000. Shipping costs totaled $13,700. Foundation work to house the centrifuge cost $7,400. An additional water line had to be run to the equipment at a cost of $3,700. Labor and testing costs totaled $5,200. Materials used up in testing cost $3,200. (Leave no cells blank. Enter O where needed.) a. What is the total cost of the equipment? Cost of the equipment b. How much of this amount should be expensed immediately? Immediately expensed

Answer 1

Cost of equipment = Cost + Shipping + Foundation + Water line + testing + materials used = 460,000+13,700+7400+3700+5200+3200 = 493,200
Immediately expensed = 0

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