Crane Corporation acquired new equipment at a cost of $110,000 plus 8% provincial sales tax and 4% GST. (GST is a recoverable tax.) The company paid $1,780 to transport the equipment to its plant. The site where the equipment was to be placed was not yet ready and Crane Corporation spent another $520 for one months storage costs. When installed, $400 in labour and $260 of materials were used to adjust and calibrate the machine to the companys exact specifications. The units produced in the trial runs were subsequently sold to employees for $330. During the first two months of production, the equipment was used at only 4% of its capacity. Labour costs of $2,900 and material costs of $3,000 were incurred in this production, while the units sold generated $5,300 of sales. Crane paid an engineering consulting firm $11,100 for its services in recommending the specific equipment to purchase and for help during the calibration phase. Borrowing costs of $740 were incurred because of the one-month delay in installation. Determine the capitalized cost of the equipment.

Capitalized cost of the equipment