Voiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $500,000 with terms of 2/10, n/30. Voiture paid the contract price on April 8 and also incurred installation and transportation costs of $7,000, sales tax of $40,000, and testing costs of $3,000. During testing, the machine was accidentally damaged, so the company had to pay $1,000 to repair it.

Required:

Determine the cost of the machine. For each item excluded from property, plant and equipment, how would the item be classified in the financial statements?

Amount Descriptions

Machine
Repair and Maintenance Expense

Determine the cost of the machine. For each item excluded from property, plant and equipment, how would the item be classified in the financial statements?

Balance Sheet Instruction

Voiture Company

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