PROPERTY, PLANT AND EQUIPMENT

Bilford Limited is a construction company based in in California, it has recently purchased some heavy machinery. The invoice of the machinery showed the following items:

Cost of Machinery 46,000.00

Cost of Delivery 900

Cost of 12 - month warranty on the machinery 1600

Total Amount Payable 48,500

In addition, the company incurred 3,400 in making modifications to its factory so that the heavy machinery could be installed.

As an Accountant, you are required to assess the cost of the machinery that should be recorded in the company's machinery account.