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Oriole Corporation acquired new equipment at a cost of $106,000 plus 7% provincial sales tax...

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Accounting

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Oriole Corporation acquired new equipment at a cost of $106,000 plus 7% provincial sales tax and 5% GST. (GST is a recoverable tax) The company paid $1.890 to transport the equipment to its plant. The site where the equipment was to be placed was not yet ready and Oriole spent another $520 for one month's storage costs. When installed, $260 in labour and $200 in materials were used to adjust and calibrate the machine to the company's exact specifications. The units produced in the trial runs were subsequently sold to employees for $470. During the first two months of production, the equipment was used at only 50%6 of its capacity. Labour costs of $3,200 and material costs of $2,400 were incurred in this production, while the units sold generated $5,600 of sales. Oriole paid an engineering consulting firm $10,300 for its services in recommending the specific equipment to purchase and for help during the calibration phase. Borrowing costs of $790 were incurred because of the one-month delay in instailation. Determine the capitalized cost of the equipment

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