ABC Inc. purchased new machinery in order to improve its production process.

ABC Inc. purchased new machinery in order to improve its production process.

Classify each of the following expenditures incurred last year as a capital expenditure (CE) or an immediate expense (IE) :

a. $42000 purchase price

b. $2520 sales tax paid on the purchase price

c. $4000 transportation costs

d. $1850 installation

e. $385 training of personnel for initial operation of the machinery

f. $6855 wages paid to employees that operate the machinery during production

g. $280 periodic lubrication after the machinery is placed in service.

h. $150 ordinary repairs to maintain the machinery in working order Give the value of the new machine and list the financial statement in which it will be
shown at fiscal year