Need answer in twenty minutes!!! ABC, Inc. purchased new machinery in order to i

Question

Need answer in twenty minutes!!!

ABC, Inc. purchased new machinery in order to improve its production process. Classify each of the following expenditures incurred last year as a capital expenditure (CE) or an immediate expense (IE) :

a. $42,000 purchase price
b. $2,520 sales tax paid on the purchase price
c. $4,000 transportation costs
d. $1,850 installation
e. $385 training of personnel for initial operation of the machinery
f. $6,855 wages paid to employees that operate the machinery during production
g. $280 periodic lubrication after the machinery is placed in service.
h. $150 ordinary repairs to maintain the machinery in working order

Give the value of the new machine, and list the financial statement in which it will be shown at fiscal year

Explanation / Answer

a. CE. b. CE. c. CE. d. CE. e. IE. f. IE. g. IE. h. IE. 50370, balance sheet

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