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13. On January 2, 2017, a company. replaced its a machine in their manufacturing plant. The following information was available on that date: Purchase price
13. On January 2, 2017, a company. replaced its a machine in their manufacturing plant. The following information was available on that date:
Purchase price $150,000
Carrying amount of old machine 10,000
Fair value of old machine 4,000
Installation cost of new machine 20,000
The old machine was sold for $4,000 cash. What amount should the company capitalize as the cost of the new machine? Show your calculations in detail.
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