Question: Denver Co . acquired a large rotary forge to be used in its manufacturing process from a competitor that was going out of business. The

Denver Co

.

acquired a large rotary forge to be used in its manufacturing process from a competitor that was going out of business. The following costs were incurred by Denver in connection with the acquisition:

List price$

375, 000

Finder

s fee

1, 500

Transportation to Denver

s plant

13, 000

Cleaning and repainting the forge

1, 800

Installation costs

21, 000

Costs to repair a control panel damaged during installation

900

Required:

How much should Denver Co

.

capitalize to the machinery account?

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