Answer:
Cost recorded for this machine = $14,240
Explanation:
Particulars Amount
Invoice Price $12,500
Less: Cash Discount $250 (12,500*2%)
Net Purchase Price $12,250
Add: Transportation Costs $360
Add: Power Connections $895
Add: Assemble Cost $475
Add: Material used $40
Add: Repair $180
Add: Material used in adjusting $40
Amount to be capitalized $14,240
Note: The repair cost is included because it is incurred before machine is put in operation.