A is corrent. The cost of machinery includes all expenditures incurred in acquiring the asset and preparing it for use. Cost includes the purchase price, freight and handling charges, insurance on the machine while in transit, cost of special foundations, and costs of assembling, installation, and testing. Therefore, both costs given in this problem would be capitalized.
B is incorrect. The cost of machinery includes all expenditures incurred in acquiring the asset and preparing it for use. Cost includes the purchase price, freight and handling charges, insurance on the machine while in transit, cost of special foundations, and costs of assembling, installation, and testing. Therefore, both costs given in this problem would be capitalized.
C is incorrect. The cost of machinery includes all expenditures incurred in acquiring the asset and preparing it for use. Cost includes the purchase price, freight and handling charges, insurance on the machine while in transit, cost of special foundations, and costs of assembling, installation, and testing. Therefore, both costs given in this problem would be capitalized.
D is incorrect. The cost of machinery includes all expenditures incurred in acquiring the asset and preparing it for use. Cost includes the purchase price, freight and handling charges, insurance on the machine while in transit, cost of special foundations, and costs of assembling, installation, and testing. Therefore, both costs given in this problem would be capitalized.
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