PRC-1 · Chapter 10 · Question 97 of 100
A machine was bought for Rs. 82,000. Delivery fees were Rs. 2,050 and installation costs were Rs. 9,500. What is the capitalized cost of the machine?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 93,550
Explanation
All costs directly attributable to bringing an asset to its intended location and working condition must be capitalized. Total = 82,000 + 2,050 + 9,500 = Rs. 93,550.
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