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I need help with this, I think I know how to do it, but not overly sure.. 10 points best answer!
Fred's Manufacturing purchased equipment in 2013 and incurred the following costs relating to the equipment during 2013:
A) List price of equipment was $10,000 but Fred received a $500 discount
B) Shipping costs of $250 to ship the equipment to Fred's plant
C) Taxes that are fully recoverable from the government of $1,200
D) An engineer's cost to install the equipment of $700
E) Regular monthly maintenance and cleaning of the equipment of $80
Required: Calculate the capitalized cost of the equipment that would be included on the balance sheet of Fred Manufacturing. Show all calculations.
Fred's Manufacturing purchased equipment in 2013 and incurred the following costs relating to the equipment during 2013:
A) List price of equipment was $10,000 but Fred received a $500 discount
B) Shipping costs of $250 to ship the equipment to Fred's plant
C) Taxes that are fully recoverable from the government of $1,200
D) An engineer's cost to install the equipment of $700
E) Regular monthly maintenance and cleaning of the equipment of $80
Required: Calculate the capitalized cost of the equipment that would be included on the balance sheet of Fred Manufacturing. Show all calculations.
Accounting- Capitalized Cost?
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