1. Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $350,000.
Shipping costs totaled $30,000. Foundation work to house the centrifuge cost $8,800. An
additional water line had to be run to the equipment at a cost of $3,400. Labor and testing costs
totaled $5,500. Materials used up in testing cost $2,500. The capitalized cost is:
Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $350,000.
Shipping costs totaled $30,000. Foundation work to house the centrifuge cost $8,800. An
additional water line had to be run to the equipment at a cost of $3,400. Labor and testing costs
totaled $5,500. Materials used up in testing cost $2,500. The capitalized cost is:
Solution
$402,600.