Jonny Fairplay owns and operates Fairway Greenhouse, Inc. which sells lawn and garden supplies and equipment. Fairway Greenhouse, Inc. purchases inventory at a cost of $8,600. It cost the company $200 in transportation costs to get the inventory to the store and then $450 to assemble it after it arrives. a. What are rules regarding capitalizing inventory costs? b. What is the cost of the inventory to be capitalized for Fairway Greenhouse, Inc.? c. Imagine that part of the inventory was damaged during transit and it will cost Fairway Greenhouse, Inc. $500 to repair the inventory. How should that cost be accounted for?