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On April 1, 2020, Desert, Company incurred the following costs for one of its machines: Purchase of new attachment $65,000 Installation of new attachment $5,000

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On April 1, 2020, Desert, Company incurred the following costs for one of its machines: Purchase of new attachment $65,000 Installation of new attachment $5,000 Replacement parts for renovation $8,000 Labor costs for renovation $17,000 Neither the attachment nor the renovation increased the estimated useful life of the machine. However, the renovations for the new attachment resulted in significantly increased productivity. w What amount should Desert capitalize as a part of the cost of the machine

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