Answer:
$184,260
Explanation:
Total cost of draw press is $172,000 and if it paid 15 days, there will be a discount of 2% and it is paid within the discount period
The discount is = $172,000 * 2/100 = $3,440
Total amount that would be capitalized is:
= ($172,000 - $3,440) + $4,600 + $11,100
= $168,560 + $4,600 + $11,100
= $184,260
So, the capitalized cost of the 10-ton draw press is $184,260
Note:
- The shipping costs and installation cost will be capitalized
- The cost of insurance in transit and cost incurred to remove a section of a wall will be capitalized as well as they are included in the cost above already
