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(Solved): VVoiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for ...
VVoiture Company manufactures compact, energy-efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $600,000 with terms of 2/10, n/30. Voiture paid the contract price on April 8 and also incurred installation and transportation costs of $4,000, sales tax of $48,000, and testing costs of $2,000. During testing, the machine was accidentally damaged, so the company had to pay $1,000 to repair it. Required: Determine the cost of the machine. For each item excluded from property, plant and equipment, how would the item be classified in the financial statements?