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Jamison Company purchased the assets of Booker Company at an auction for $1,400,000.An independent appraisal of the fair value of the assets is listed below:
-On August 1, 2010, Hayes Corporation purchased a new machine on a deferred payment basis.A down payment of $3,000 was made and 4 monthly installments of $2,500 each are to be made beginning on September 1, 2010.The cash equivalent price of the machine was $12,000.Hayes incurred and paid installation costs amounting to $500.The amount to be capitalized as the cost of the machine is

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Use the following information to answer questions 
Jamison Company purchased the assets of Booker Company at an auction for $1,400,000.An independent appraisal of the fair value of the assets is listed below: 
-On August 1, 2010, Hayes Corporation purchased a new machine on a deferred payment basis.A down payment of $3,000 was made and 4 monthly installments of $2,500 each are to be made beginning on September 1, 2010.The cash equivalent price of the machine was $12,000.Hayes incurred and paid installation costs amounting to $500.The amount to be capitalized as the cost of the machine is

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The cost of the machine includes the cash equivalent price of $12,000, plus the down payment of $3,000 and the 4 monthly installments of $2,500 each, totaling $10,000. Additionally, the installation costs of $500 should also be capitalized. Therefore, the total cost to be capitalized is $12,000 + $3,000 + $10,000 + $500 = $12,500.

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