On September 10, 2020, Crane Company incurred the following costs for one of its printing presses:Purchase of attachment $49000Installation of attachment 5400Replacement parts for renovation of press 15400Labor and overhead in connection with renovation of press 6700Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized?

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Asked Nov 21, 2019
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On September 10, 2020, Crane Company incurred the following costs for one of its printing presses:

Purchase of attachment   $49000
Installation of attachment   5400
Replacement parts for renovation of press   15400
Labor and overhead in connection with renovation of press   6700


Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized?

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Cost of machinery and equip...

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The cost of equipment is calculated as the sum of purchase price, amount paid for transportation, installation costs, non-refundable sales and other taxes, purchase commission and any amount paid or expenditure incurred to test the asset. The cost of equipment also includes the amount incurred to bring the machine in its intended location. The cost of removing and disposing of old machine is not taken into consideration.

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