You bought a new piece of machinery. You have a set of bills in front of you and
ID: 2728863 • Letter: Y
Question
You bought a new piece of machinery. You have a set of bills in front of you and you are trying to record the acquisition cost for the sake of reporting the asset on your balance sheet. Which of the following will NOT be a part of that acquisition cost?
purchase price paid to the manufacturer
modification cost to customize it for your production style
installation cost
quarterly maintenance cost
purchase price paid to the manufacturer
modification cost to customize it for your production style
installation cost
quarterly maintenance cost
Explanation / Answer
quarterly maintenance cost