Holiday laboratories laboratories purchased a high speed industrial centrifuge at a cost of $420,000. shipping costs totaled $15,000. foundation work to house the centrifuge cost $8,000. an additional water line had to be run to the equipment at a cost of $3,000. labor and testing costs totaled $6,000. materials used up in testing cost $3,000. the capitalized cost is:

$455,000

Explanation:

Given that,

high speed industrial centrifuge at a cost = $420,000

Shipping costs = $15,000

Foundation work =  $8,000

additional water line = $3,000

Labor and testing costs = $6,000

Materials used up in testing = $3,000

Total Costs to be capitalized:

= High-speed industrial centrifuge + Shipping costs + Foundation Work + Additional Water Line + Labor and testing costs + Materials used in testing

=  $420,000 + $15,000 + $8,000 + $3,000 + $6,000 + $3,000

= $455,000

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