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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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