Holiday Laboratories purchased a high speed industrial centrifuge at a cost of $420,000.Shipping costs totaled $15,000.Foundation work to house the centrifuge cost $8,000.An additional water line had to be run to the equipment at a cost of $3,000.Labor and testing costs totaled $6,000.Materials used up in testing cost $3,000.What is the total cost of the equipment? How much of this amount should be expensed immediately?

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The Answer of Holiday Laboratories purchased a high speed industrial centrifuge at a cost of $420,000.Shipping costs totaled $15,000.Foundation work to house the centrifuge cost $8,000.An additional water line had to be run to the equipment at a cost of $3,000.Labor and testing costs totaled $6,000.Materials used up in testing cost $3,000.What is the total cost of the equipment? How much of this amount should be expensed immediately?

Holiday Laboratories Purchased a High Speed Industrial Centrifuge at a Cost