Exercise $7-43($Algorithmic$)$

Cost of a Fixed Asset

Laurel Cleaners purchased an automatic dry cleaning machine for $$135,000$ from TGF Corporation on April $1,2019.$ Laurel paid $$35,000$ in cash and signed a $5-$year, $10\%$ note for $$100,000.$ Laurel will pay interest on the note each year on March $31,$ beginning in $2020.$ Transportation charges of $$3,500$ for the machine were paid by Laurel. Laurel also paid $$2,450$ for the living expenses of the TGF installation crew. Solvent, necessary to operate the machine, was acquired for $$1,000.$ Of this amount, $$500$ of the solvent was used to test and adjust the machine.

Required:

Compute the cost of the new dry cleaning machine.