Cost of the machine ( video below)

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   

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