Question #8 Acquisition Costs of Long-Term Assets (6 points)

The acquisition costs include all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.

Required:

Indicate whether the following items would be included in the cost of Machinery and Equipment:

1. Purchase price? Circle: YES? or NO?
2. Duty paid if the terms were FOB Destination? Circle: YES? or NO?
3. Installing and assembling the Machine? Circle: YES? or NO?
4. The ordinary maintenance of the Machine? Circle: YES? or NO?
5. Initial testing of the Machine to ensure it works? Circle: YES? or NO?