Answer:
The capitalized cost = $187,600
so correct option is C. $187,600
Explanation:
given data
cost = $180,000
terms of 5/15, n/45
Shipping costs = $4,600
insurance in transit = $200
Installation costs = $12,000
wall and rebuilding = $4,000
to find out
The capitalized cost of the 10-ton draw press is
solution
we get here The capitalized cost that is express as
The capitalized cost = Purchase price + Shipping Costs + Installation costs ......................1
so here Purchase price is = $180,000 × ( 100% - 5% )
so that
The capitalized cost = ($180,000 × 95%) + $4,600 + $12,000
The capitalized cost = $187,600
so correct option is C. $187,600
