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The newspaper El Nuevo Amanecer bought a printing machine from a company located in Germany....

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Accounting

The newspaper El Nuevo Amanecer bought a printing machine from a company located in Germany. The purchase price of the machinery was $ 500,000.

The newspaper paid a transportation insurance of $ 1,000 and the sale and use tax at the Puerto Rico dock for $ 57,500. $ 500 transportation was paid from the dock to the newspaper, and the installation costs were $ 3,000. The newspaper purchased property insurance for $ 300 for when the machinery begins to be used in operations to insure it against fire or flood.

Similarly, the newspaper paid $ 1,000 for a service contract with the selling company in Germany to support the handling and repair of the machinery when it begins to be used in operations.

What is the initial base of the machinery? Present your computations.

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