Question: Merry Co. purchased a machine costing $125,000 for its manufacturing operations and paid shipping costs of $20,000. Merry spent an additional $10,000 testing and preparing

Merry Co. purchased a machine costing $125,000 for its manufacturing operations and paid shipping costs of $20,000.

Merry spent an additional $10,000 testing and preparing the machine for use. What amount should Merry record as the cost of the machine?

a. $155,000

b. $145,000

c. $135,000

d. $125,000

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