Oi darmary 1. War 1. ABC Company purchased a plece of equipment with a list seice of 5100,000 . The celler avreed to whow a 2k discount. Dedvery terms were FOO hipping point and freight amounted to $1,500. ABC had to hire a soeciakist for 15,500 to setup the equipment. The equipment operator was paid a salary of 340,000 in Year 1. ABC tnok out two lnsurance pelicies. The fint cost \$3.000 and covered the equlpment during transport while the other cost $10,000 and conered the equipment duatene ihe throughout Yoar 1. The equipment had a 7 year useful life and an expected salvage value of 512.000 All cous are paid in cash Determine the amount to be capitalized in an asset account for the purchase of the equipment. 5980000 $100,000 599.500 $157,500 $107.500