The following expenditures were incurred in connection with a new
The following expenditures were incurred in connection with a new machine acquired by a metals manufacturing company. Identify those that should be included in the cost of the asset.
(a) Freight charges,
(b) Sales tax on the machine,
(c) Payment to a passing motorist whose car was damaged by the equipment used in unloading the machine,
(d) Wages of employees for time spent in installing and testing the machine before it was placed in service,
(e) Wages of employees assigned to lubricate and make minor adjustments to the machine one year after it was placed in service.

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