Answer:
$19300
Explanation:
Given: Manufacturing: -
Purchase price $16,000
Transportation costs 800
Installation 500
Testing 2,000
Repair of part broken during shipment 300.
Now, finding the amount to capitalize the machinery.
Amount of machinery capitalization= [tex]Purchase\ price+ transportation\ costs+ installation\ cost+ testing\ cost[/tex]
⇒ Amount of machinery capitalization= [tex]\$16000+\$800+\$500+\$2000[/tex]
∴ Amount of machinery capitalization= [tex]\$ 19300[/tex]
Hence, $19300 should calabasas capitalize the machinery.
