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Due to increases in business, we needed to purchase a new filing machine to keep up with the demand for our products. The machine was
Due to increases in business, we needed to purchase a new filing machine to keep up with the demand for our products. The machine was purchased new for $80,000 and freight costs were $2,500. Installation costs were $2,800, but during the unpacking and installing process, a piece of the equipment was damaged and costs an additional $1,100 to repair How should these costs be classified? $86,400 should be classified as a fixed asset. $85,300 should be classified as a fixed asset and $1,100 should be classified as an expense. O $80,000 should be classified as a fixed asset and $6,400 should be classified as an expense. O $82,500 should be classified as a fixed asset and $3,900 should be classified as an expense
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