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Please Answer ASAP Bramble Co. recently installed some new computer equipment. To prepare for the installation, Bramble had some electrical work done in what was
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Bramble Co. recently installed some new computer equipment. To prepare for the installation, Bramble had some electrical work done in what was to become the server room, costing $19,900. The invoice price of the server equipment was $194,000. Three printers were also purchased at a cost of $1,800 each. The software for the system was an additional $43,400. The server equipment was believed to have a useful life of eight years, but due to the heavy anticipated usage, the printers were expected to have only a four-year useful life. The software to run the system was estimated to require a complete upgrade in five years to avoid obsolescence. Additionally, it cost $11,700 for delivery. All of the above costs were subject to a 6% non-refundable provincial sales tax. During the installation, a training course was conducted for the staff that would be using the new equipment, at a cost of $9,870. Assume that Bramble follows IFRS, and that any allocation of common costs is done to the nearest 1%(e.g,80%,6%,14%). (b) Assume that Bramble decides to capitalize the following components of the computer system: server equipment, printers, and software. Calculate the amount to be capitalized for each of these asset groups. (Round percentage to 0 decimal places, e. 3 . 52% and final answers to 0 decimal places, e.g. 5,275 Step by Step Solution
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