Shin Min Ah Company acquired some new equipment. The following data have been made available for

you:

List price of the equipment

14,000

Cash discount available but not taken on purchase

200

Freight paid on the new equipment

250

Cost of removing the old equipment

170

Installation costs of the new equipment

430

Testing cost before the equipment was put to regular operation

295

Loss on premature retirement of the old equipment

120

Estimated cost of manufacturing similar equipment in the company's own plant, including

overhead

13,800

What amount should be capitalized as the cost of the new equipment?

A.

14,775

C.

14,975

B.

28,865

D.

15,065