Answer Happy

7. Atlas Ltd has acquired a new machine, which it has had
installed in its factory. The following costs has been incurred in
the process.
Discuss which of the following costs should be capitalized into
the cost of the building.
(a) Labour and travel costs for managers to inspect possible new
machines and for negotiating for a new machine
(b) Freight costs and insurance to get the new machine to the
factory
(c) Costs for renovating a section of the factory in
anticipation of the new machine's arrival to ensure that all the
other parts of the factory will have easy access to the new
machine
(d) Cost of cooling equipment to assist in the efficient
operation of the new machine
(e) Costs of repairing the factory door, which was damaged by
the installation of the new machine
(f) Training costs of workers who will use the machine