Acme, Inc. manufactures cabinets and countertops. The company has a factory and a showroom. All items displayed in the showroom are available for sale after they have been on display for 18-24 months. In 2020, Acme, Inc. remodeled and added to one of its showrooms. As part of the remodel, the company changed out the cabinet displays and sold the older displays. A new 1,500 square foot addition was added to the showroom at a cost of $130,000. The wiring for the lights $2,000, phone/internet system $1,500, and security system $500 was installed. The total manufactured cost of the new cabinets placed on display was $34,000. New carpet was purchased and installed at a cost of $8,000. A receptionist desk area including filing cabinets, etc. were purchased and installed at a cost of $10,000. The company expects that the new lighting will last for the remaining life of the building. The new addition and wiring were completed on September 1, 2020. The display cabinets, carpeting, and other remodeling activities were completed and ready for customers to see on October 1, 2020. In addition to the above items, the business purchased a painting by a famous artist for $7,000. The painting was hung in the new showroom.

1. What is the amount that should be capitalized as “tangible personal property” in 2020? (Show your work)

Answer rating: 100% (QA)

Capitalization property AdditionTo Showroom130000 Phone Internet Sec... View the full answer