Question $11$

On March $1,2025,$ Sprightly Dog Treat Company purchased a new conveyor component to be attached to its dog bone

production line. The cost of this component was $$120,000.$ Sprightly also incurred $$17,000$ of installation costs and

$$15,000$ of costs to rearrange the production line. By adding this component, Sprightly estimates that the 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?

$$137,000$

$$120,000$

$$-0$

$$152,000$