A Company Purchased a Special Purpose Machine on August 1

Essay

A company purchased a special purpose machine on August 1 of the past year and it was installed and ready to run on January 1 of this year.The following costs were incurred in the purchase and installation of the machine.
Determine the total cost of the machine.
$\begin{array}{|l|r|}\hline \text { Invoice price } & \$ 1,200,000 \\\hline \text { Freight costs } & 6,000 \\\hline \text { Installation costs } & 64,000 \\\hline \text { Electrical and power connections } & 32,000 \\\hline \text { Repairs to correct damage incurred during uncrating } & 12,000\\\hline \text { Costs to adjust machine to appropriate specifications } & 56,000 \\\hline \text { Spare parts for future use } & 108,000 \\\hline \text { Sales tax } & 70,500 \\\hline \text { Fines incurred during transport of machine } & 400 \\\hline \text { Cost of special foundation required for machine installation } & 28,500\\\hline \end{array}$