Physical Limited received a highly specialized piece of medical equipment from a nearby hospital , without offering anything of value in exchange . If the equipment was purchased new , it would cost $ 500,000 . Similar equipment , slightly used , can be purchased for $ 425,000 . Physcal paid to move the equipment ( $ 10,000 ) and to install the equipment ( 4,000 ) In addition the manager of Physcal decided to paint and retile the room where the equipment was installed at a cost of $1,000. What is the capitalized cost of the equipment and the amount of the contribution revenue, respectively?

Select one :

a. $ 500,000 $ 500,000

b. $439,000 $ 425,000

c. $ 439,000 $ 500,000

d . $ 425,000 $ 425,000

e. 440,000 $ 425,000