the international shipping company incurred the costs below related to a new packing machine: invoice price…

the international shipping company incurred the costs below related to a new packing machine: invoice price of packing machine $ 181,000 cash discount for prompt payment 6,500 transportation costs 4,830 installation costs 2,400 required: what is the capitalized cost of the new packing machine? cost of new machine: invoice price $ 181,000 less: cash discount transportation costs 4,830 installation costs 2,400 total capitalized cost of new packing machine $ 181,730

the international shipping company incurred the costs below related to a new packing machine: invoice price of packing machine $ 181,000 cash discount for prompt payment 6,500 transportation costs 4,830 installation costs 2,400 required: what is the capitalized cost of the new packing machine? cost of new machine: invoice price $ 181,000 less: cash discount transportation costs 4,830 installation costs 2,400 total capitalized cost of new packing machine $ 181,730

Answer

Explanation:

Step1: Subtract cash - discount from invoice price

$181000 - 6500$

Step2: Add transportation and installation costs

$(181000 - 6500)+4830 + 2400$ $=174500+4830 + 2400$ $=179330+2400$ $=181730$

Answer:

$181730$