A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The listed...

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A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The listed purchase cost of the equipment from a vendor was $70,000. In addition, six other costs related to the equipment were incurred at the time of acquisition and in the first month of operations. These six related costs are displayed in the illustration. Purchase Cost of Equipment and Six Related Costs Total = $110,000 Purchase Cost $70,000 1. Sales Tax $5,600 2. Shipping and Handling $6,200 3. Installation and Preparation $12,700 4. Testing and Safety Inspection $8,400 5. Employee Training for Operations $5,500 6. Maintenance for First Month of Operations $1,600 Click here to open graph in separate window. Required: 1. Which costs represent normal costs that are necessary to get the asset in condition and location for its intended use? 2. Which costs typically would be related to operating the equipment once it's in use? 3. For the $110,000 of expenditures related to the equipment, determine the amount to report in the Equipment account and the total amount to report in Expense accounts. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For the $110,000 of expenditures related to the equipment, determine the amount to report in the Equipment account and the total amount to report in Expense accounts. Account Equipment Expense accounts Amount A capital acquisitions manager recently purchased equipment needed to begin production of new inventory. The listed purchase cost of the equipment from a vendor was $70,000. In addition, six other costs related to the equipment were incurred at the time of acquisition and in the first month of operations. These six related costs are displayed in the illustration. Purchase Cost of Equipment and Six Related Costs Total = $110,000 Purchase Cost $70,000 1. Sales Tax $5,600 2. Shipping and Handling $6,200 3. Installation and Preparation $12,700 4. Testing and Safety Inspection $8,400 5. Employee Training for Operations $5,500 6. Maintenance for First Month of Operations $1,600 Click here to open graph in separate window. Required: 1. Which costs represent normal costs that are necessary to get the asset in condition and location for its intended use? 2. Which costs typically would be related to operating the equipment once it's in use? 3. For the $110,000 of expenditures related to the equipment, determine the amount to report in the Equipment account and the total amount to report in Expense accounts. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 For the $110,000 of expenditures related to the equipment, determine the amount to report in the Equipment account and the total amount to report in Expense accounts. Account Equipment Expense accounts Amount

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In accounting when you acquire an asset certain costs related to the acquisition and preparation for ... View the full answer