W bought a new printing machine. The cost of the machine was $120,000 . The installation costs were $7,500 and the employees received training on how to use the machine, at a cost of $1,000. Before using the machine to print customers’ orders, a test was undertaken and the paper and ink cost $1,500.
What should be the cost of the machine in the company’s statement of financial position?
Answer
| $ | |
| Cost of machine | 120,000 |
| Installation | 7,500 |
| Testing | 1,500 |
| 129,000 |