COST OF A FIXED ASSET
Colson Photography Service purchased a new digital imaging machine on April 15 for $13,400. During installation Colson incurred and paid in cash the following costs:
|
Rental of drill
|
$150
|
|
Electrical contractor
|
400
|
|
Plumbing contractor
|
190
|
Colson also paid $160 to replace a bracket on the digital imager that was damaged when one of Colson's employees dropped a box on it while it was being installed.
Required:
1. Determine the cost of the digital imaging machine.
2. Explain why you included or excluded the $160 bracket replacement cost.