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7) Fox Brothers purchased machinery. Classify each of the following amounts as something that should be capitalized or expensed a. purchase price of machinery b.
7) Fox Brothers purchased machinery. Classify each of the following amounts as something that should be capitalized or expensed a. purchase price of machinery b. sales tax on purchase of machinery c. shipping costs for machinery d. insurance on shipment of machinery e. installation of machinery f. training of employees for initial operation of machinery g. special reinforcement to machinery platform h. refinishing of machine before use to alter color (to match with company colors) i. depreciation on the machinery as it is used .major overhaul to extend the machinery's life by 3 years k. ordinary repairs to keep the machinery in good working order I. research and development to create new products to be manufactured on the machinery m. advertising of new products manufactured on the machinery n. renovations to the machinery adding new production capabilities
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