On March $1,2025,$ Swifty Dog Treat Company purchased a new conveyor component to be attached to its dog bone production line.The cost of this component was $$114000.$ Swifty also incurred $$16000$ of installation costs and $$16000$ of costs to rearrange the production line. By adding this component, Swifty estimates production of its dog bones will increase by $30\%,$ although the life of the production line was not extended. What amount of these costs should be capitalized? 

Answer rating: 100% (QA)

To determine which costs should be capitalized we need to understand the concept of capitalization C... View the full answer