Wat amount of the costs should be capitalized


On September 10, 2010, Flint Co. incurred the following costs for one of its printing presses:

Purchase of attachment $55,000
Installation of attachment 5,000
Replacement parts for renovation of press 18,000
Labor and overhead in connection with renovation of press 7,000

Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized?

a) $85,000

b) $78,000

c) $67,000

d) $0

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Accounting Basics: Wat amount of the costs should be capitalized
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