Capitalizing costs (LO 11-2) Phoenix Co. acquired a large piece of specialized machinery used in its manufacturing process. The following costs were incurred in connection with the acquisition: Finder’s fee $ 2,000 List price 230,000 Transportation fee 4,000 Speeding ticket during transportation 65 Installation fee 2,500 Cost to repair a door damaged during installation 1,200 Required: Which of the costs incurred by Phoenix Co. should be capitalized to the machinery account?

$ 238,500.00  

Explanation:

The costs to capitalize in respect of the specialized machinery comprises of the finder's fees of $2,000 ,list price of $230,000,transportation fee of $4000 as well as the installation fee of $2,500

costs to be capitalized=$2,000+$230,000+$4,000+$2,500=$ 238,500.00  

The cost of speeding ticket during transportation is not included because it is an actual cost of bringing the asset to its present location

The cost of repair due to damage that occurred during installation is also not included.

i this its 7 years i hope this

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know