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On March 1, 2025, Blossom Dog Treat Company purchased a new conveyor component to be attached to its dog bone production line. The cost


 

On March 1, 2025, Blossom Dog Treat Company purchased a new conveyor component to be attached to its dog bone production line. The cost of this component was $117000. Blossom also incurred $16000 of installation costs and $12000 of costs to rearrange the production line. By adding this component, Blossom estimates production of its dog bones will increase by 30%, although the life of the production line was not extended. What amount of these costs should be capitalized?

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