TB Problem 10-204 (Algo) Mad Hatter Enterprises purchased... Mad Hatter Enterprises purchased new equipment for $357,000, terms fo.b. shipping point. Other costs connected with the purchase were as follows: State sales tax Freight costs Insurance while in transit Insurance after equipment placed in service Installation costs $ 28,400 4,800 720 1,120 1,600 Insurance for the first year of operations Testing Required: Determine the capitalized cost of the equipment. Cost of equipment 2,000 620