eBook Cost of a Fixed Asset Mist City Car Wash purchased a new brushless car-washing machine for one of its bays. The machine cost $31,300. Mist City borrowed the purchase price from its bank) on a 1-year, 12% note payable. Mist City paid $500 to have the machine transported to its place of business and an additional $200 in shipping insurance. Mist City Incurred the following costs as a part o rt of the Installation: Plumbing Electrical $2,700 1,640 Water (for testing the machine) Soap (for testing the machine) 35 18 During the testing process, one of the motors became defective when soap and water entered the motor because its cover had not been installed properly by Mist Cry's employees. The motor was replaced at a cost of $450. Required: Compute the cost of the car-washing machine. 36,790 X YO My Work The cost of axed asset is any expenditure necessary to acquire the asset and to prepare the asset for use. These expenditures are said to be capitalized