Cristy Fleming owns and operates Quesenberry Print Co. During February, Quesenberry Print Co. incurred the following costs in acquiring two printing presses. One printing press was new, and the other was used by a business that recently filed for bankruptcy.
Costs related to the new printing press include the following:
1. Freight
2. Special foundation
3. Sales tax on purchase price
4. Insurance while in transit
5. Fee paid to factory representative for installation
6. New parts to replace those damaged in unloading
Costs related to the secondhand printing press include the following:
7. Repair of vandalism during installation
8. Replacement of worn-out parts
9. Freight
10. Installation
11. Repair of damage incurred in reconditioning the press
12. Fees paid to attorney to review purchase agreement
a. Indicate which costs incurred in acquiring the new printing press should be debited to the asset account.
b. Indicate which costs incurred in acquiring the secondhand printing press should be debited to the asset account.