Lauderdale Company purchased a manufacturing machine with a…
Lauderdale Company purchased a manufacturing machine with a list price of $150,000 and received a 3% discount for paying cash at the time of purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $2,800. Lauderdale was required to pay another $3,200 to have the machine installed and tested prior to use. Insurance costs to protect the asset from fire and theft increased by $3,600 per year. What is the total cost of the machine (i.e., the amount to be capitalized)?