An office of the IRS acquired some used computer equipment. Installation costs were $10,000. Repair costs prior to use were $15,000. The purchasing manager, with a salary of $56,000 per annum, spent 1 month evaluating equipment and completing the transaction. The invoice price was $450,000. The seller paid its salesman a commission of 5% and offered the buyer a cash discount of 2% if the invoice was paid within 60 days. Freight costs were $7,400, paid by the purchaser. Repairs during the first year of use were $18,000.
Compute the total capitalized cost to be added to the Equipment account. The seller was paid within 60 days.