XYZ Enterprises purchased a heavy machine for $28000, terms 1/10, 1/60, FOB shipping point. It received a freight invoice from Fast Delivery for $450.XYZ took advantage of the discount. It also required a special steel mounting and power connection costing $985 and another &600 was paid to put the machine into operation. However due to mishandling during installation a part was damaged and had to be replaced for $380.Another $310 was paid to labor as installation charges. Special insurance @200 per month was needed henceforth. Calculate the amount to be capitalized for this machine. (Hint - The question is asking as to what the initial cost of the machine should be.1/10 and n/60 are terms of payment or discount terms- which means 1 % discount if paid within 10 days and no discount beyond that but must be paid within 60 days) Ans