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Determining Amount of PP&E to Capitalize AMP Corporation purchased new manufacturing equipment with an...

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Accounting

Determining Amount of PP&E to Capitalize
AMP Corporation purchased new manufacturing equipment with an invoice cost of $60,000, plus sales tax of 5% on the selling price. AMP also incurred a freight charge of 8% of the selling price to obtain the equipment and paid an outside consultant $600 for installation of the equipment. AMP retained the services of the consultant for an additional few days for $1,200 to help employees train on the equipment's operations. Insurance premiums increased by $360 for the year related to the equipment usage. The company also received $1,200 for the residual value of the machine that was replaced.
Determine the amount AMP should capitalize for equipment related to this purchase. $67,560
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