Question: Sicily Pizza purchased baking ovens from New World Deli. New World Deli was closing its bakery business and sold its three-year-old ovens for $300,000. In addition to the purchase price, Sicily Pizza paid shipping costs of $15,000. Employees of Sicily Pizza installed the ovens; labor costs were $16,000. An outside contractor performed some of the electrical work for $2,800. Sicily Pizza consumed pizza dough with a cost of $1,200 in testing the ovens. It then installed new timers on the ovens at a cost of $700 and placed the machines in operation.
Required: 1. Prepare a schedule showing the amount at which Sicily Pizza should record the ovens in the Equipment account.
2. Indicate where any amounts not included in the Equipment account should be recorded.