Denny Company purchased a new piece of equipment to use in operations. The following are expenditures related to the purchase. State whether each item is included in the capitalized cost of equipment. In other words, which expenditures are included in Capitalized Cost of PP&E?

Purchase price of $72,000:

$760 repair to warehouse floor damage caused by installation:

Sales tax on the purchase of $7,000:

Insurance cost of $1,600 for the machine while in transit:

Assembly costs of $1,100:

Freight charges of $1,600 to ship equipment to the factory:

Increase of $200 in annual insurance premium starting next year: