COST OF A FIXED ASSET Colson Photography Service purchased a new digital imaging machine on April 15 for

$13,400. During installation Colson incurred and paid in cash the following costs:

Rental of drill $150 Electrical contractor 400 Plumbing contractor 190 Colson also paid $160 to replace a bracket on the digital imager that was damaged when one of Colson’s employees dropped a box on it while it was being installed.

Required:

. Determine the cost of the digital imaging machine.

. Explain why you included or excluded the $160 bracket replacement cost.

Exercise