PA9-1 (Algo) Computing Acquisition Cost and Recording Depreciation under Three Alternative Methods
[LO 9-2, LO 9-3]
[The following information applies to the questions displayed below.]
At the beginning of the year, Buffalo Machinery bought three used machines. The machines immediately were
overhauled, were installed, and started operating. Because the machines were different, each was recorded separately in
the accounts. Details for Machine A are provided below.
Cost of the asset. $10,900
Installation costs. $990
Renovation costs prior to use $1170
Repairs after production began
$890
PA9-1 (Algo) Part 1
Required:
1. Compute the amount to be capitalized for Machine A.
Total cost