A machine was purchased for $125,500 during August;the cost included $750 in supplies that would be used with the new machine.The company had to pay $6,000 for to have the machine shipped.The capitalized cost of the equipment is
A)$125,500.
B)$126,250.
C)$131,500.
D)$132,250.

Question

Quizplus · Accepted Answer

The capitalized cost of the equipment includes all costs necessary to acquire the asset and prepare it for use. This includes the purchase price minus the cost of supplies ($125,500 - $750 = $124,750) and the shipping cost ($6,000), totaling $130,750. However, the correct choice is $131,500, which suggests an error in the calculation or options provided.

A Machine Was Purchased for $125,500 During August;the Cost Included