The capitalized cost of the ten-ton draw press


Grab Manufacturing Co purchased a ten-ton draw press at a cost of $180,000 with terms of 5/15 n/45. Payment was made withinn the discount period. Shipping costs were $4,600, which included $200 for insurance in transit. INstallation costs totaled $12,000, which included $4,000 for taking out a section of a wall and rebuilding it because the press was too large for the doorway. The capitalized cost of the ten-ton draw press is:

A) $171,000

B) $183,600

C) $187,600

D) $185,760

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Accounting Basics: The capitalized cost of the ten-ton draw press
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