On January 1, 2018, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on September 30, 2019. Expenditures on the project were as follows: January 1, 2018 September 1, 2018 $498,000 December 31, 2018 March 31, 2019 September 30, 2019 $334,000 $334,000 $498,000 $498,000 ream world had $6,600,000 in 12% bonds outstanding through both years. reamworld's average accumulated expenditures for 2018 was: Multiple Choice $500,000. Mad Hatter Enterprises purchased new equipment for $370,000, terms fo.b. shipping point. Other costs connected with the purchase were as follows: State sales tax Freight costs Insurance while in transit Insurance after equipment placed in service Installation costs Insurance for the first year of operations Testing $29,700 6,100 850 1,250 2,250 2,650 $750 Required: Determine the capitalized cost of the equipment. Cost of equipment