India Balance sheet

[Paulraj]

Which of the following costs would NOT be included in the cost of machinery?

• Invoice price

• Installation costs

• Testing of machinery prior to its intended use

• All of the above would be included.

 

[Fidget]

Tell you what, you take each of those top 3 in turn, tell us whether you think it should be included or not, and why... and we'll tell you if you're correct or not.

 

[Paulraj]

I guess the answer would be Installation cost.

 

[Ashley K. Knowlton MBA]

Nope.

All are included. Anything that is required to "put an asset into service" is included in the cost of that asset.

Also included would be shipping and taxes, if applicable.

 

[David age 66]

All of the above. I passed the CPA three years ago but barely.