Question
Sydney Lanes, a local bowling alley, installed automatic scorekeeping equipment. The electrical work required to prepare for the installation was $18,770. The invoice price of
Sydney Lanes, a local bowling alley, installed automatic scorekeeping equipment. The electrical work required to prepare for the installation was $18,770. The invoice price of the equipment was $179,230.
Additional costs were $3000 for delivery and $600 for insurance during transportation. The company also paid $350 in additional annual insurance premiums for the new equipment. During the installation, a component of the equipment was damaged because it was carelessly left on a lane and hit by the automatic lane cleaning machine. The cost of repairing the component was $3,020.
a) Which items should be included?
b) What is the cost that should be capitalized for the automatic scorekeeping equipment?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started