ACCA F3 Plant Capitalised
On 1 January 2005 a company purchased some plant.
The invoice showed
| Cost of Plant | 30,000 |
| Delivery to factory | 500 |
| One Year Warranty covering break down during 2005 | 4,000 |
| Total Cost | 34,500 |
Modifications to the factory building costing $8,000 were necessary to enable the plant to be installed.
What amount should be capitalised for the plant in the company’s records?
Sugggested Solution:
| Cost of Plant | 30,000 |
| Delivery to factory | 500 |
| Modifications to the factory building | 8,000 |
| Total Cost | 38,500 |