On January 1, Year 1, ABC Company purchased a piece of equipment with a list price of $200,000. The seller agreed to allow a 5% discount. Delivery terms were FOB shipping point and freight amounted to $4,000. ABC had to hire a specialist for $15,000 to setup the equipment. The equipment operator was paid a salary of $50,000 in Year 1. ABC took out two insurance policies. The first cost $2,000 and covered the equipment during transport while the other cost $12,000 and covered the equipment during use throughout Year 1. The equipment had a 5 year useful life and an expected salvage value of $3,000. All costs are paid in cash. Determine the amount to be capitalized in an asset account for the purchase of the equipment