Question

Melinda Stoffers owns and operates ABC Print Co. During February, ABC incurred the following costs in acquiring two printing presses. One printing press was new, and the other was purchased from a business that recently filed for bankruptcy.

Answer 1

Based on the costs to ABC Print Co. to acquire the printing presses, the costs that should be debited to assets are:

1. Fee paid to factory representative for installation - Yes
2. Freight - Yes
3. Insurance while in transit - Yes
4. New parts to replace those damaged in unloading -No
5. Sales tax on purchase price - Yes
6. Special foundation - Yes
7. Fees paid to attorney to review purchase agreement - Yes
8. Freight - Yes
9. Installation - Yes
10. Repair of damage incurred in reconditioning the press-No
11. Replacement of worn-out parts - Yes
12. Vandalism repairs during installation-No

What costs will go to assets?

The costs that will go to assets are only those that have to do with the purchasing of the asset, its transportation to the business, and the costs to install it.

The costs going to assets will not include repairs to damage and new parts that may have been purchased to replace damaged parts.

Find out more on cost capitalization at brainly.com/question/17198274

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