Question
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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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
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