Determining Amount of PP&E to Capitalize AMP Corporation purchased new manufacturing equipment with an...
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Accounting
Determining Amount of PP&E to Capitalize
AMP Corporation purchased new manufacturing equipment with an invoice cost of $ plus sales tax of on the selling price. AMP also incurred a freight charge of of the selling price to obtain the equipment and paid an outside consultant $ for installation of the equipment. AMP retained the services of the consultant for an additional few days for $ to help employees train on the equipment's operations. Insurance premiums increased by $ for the year related to the equipment usage. The company also received $ for the residual value of the machine that was replaced.
Determine the amount AMP should capitalize for equipment related to this purchase. $
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