Friday, August 12, 2011

How do you compute the acquisition cost for the buildings and equipment for this question?

In 2011, ABC Company purchased property, plant and equipment priced at $1.8 billion. Assume that the company also paid $70 million for sales tax; $8 million for transportation costs; $1.3 million for installation and preparation of the property, plant and equipment before use; and $100 000 in maintenance contracts to cover repairs to the property, plant and equipment during use.

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