Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of
ID: 2522821 • Letter: K
Question
Kegler Bowling installs automatic scorekeeping equipment with an invoice cost of $165,000. The electrical work required for the installation costs $17,325. Additional costs are $3,465 for delivery and $11,890 for sales tax. During the installation, a component of t equipment is carelessly left on a lane and hit by the automatic lane-cleaning machine. The cost of repairing the component is $1,600 ts What is the total recorded cost of the automatic scorekeeping equipment? Included DR Machinery Excluded Total cost DR Expense $ 165,000 17,325 3,465 11,890 1,600 $ 199,280 eBook Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs ferences TotalExplanation / Answer
All the cost except repair cost will be included because repair cost are recurring expense and not one time expense and it doesn't increase the life of asset either. DR Machinery cost is (165000+17325+3465+11890) 197680$
Installation cost, delivery cost & sales tax are required cost to bring equipment in working condition and thus it will be included in cost of asset.
DR expense cost is $1600
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