Mark's Markers purchased a new machine to use in the manufacturing process for $$2,500.$ The sales tax was an additional $$150$ and the shipping charges were $$200.$ One month after using the machine, a small part broke and needed repair. The cost of the repair was $$900.$ How will Mark's Markers treat the costs for tax purposes?

Multiple choice question.

The cost of $$2,650$ will be capitalized and depreciated over the asset's life. The shipping and repairs of $$1,100$ will be expensed immediately.

The cost of $$2,500$ will be capitalized and depreciated over the asset's life. The other costs of $$1,250$ will be expensed immediately.

The cost of $$2,850$ will be capitalized and depreciated over the asset's life. Repairs of $$900$ will be expensed immediately.

The cost of $$2,700$ will be capitalized and depreciated over the asset's life. The repairs and tax of $$1,050$ will be expensed immediately.