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On June 18, 2017, Dell Printing Co. incurred the following costs for one of its printing presses: Purchase of collating and stapling attachment $84,000 Installation

On June 18, 2017, Dell Printing Co. incurred the following costs for one of its printing presses:

Purchase of collating and stapling attachment

$84,000

Installation of attachment

36,000

Replacement parts for overhaul of press

26,000

Labor and overhead in connection with overhaul

14,000

The overhaul resulted in a significant increase in production. Neither the attachment nor the overhaul increased the estimated useful life of the press. What amount of the above costs should be capitalized?

$120,000

$84,000

$160,000

$0

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