(Answered) Problemmunich corp acquired several non-current assets

Accounting

Problem

Munich Corp. acquired several non-current assets during the 20X5 fiscal year. The following information is for machinery that was purchased:

Machinery (price: $196,262; non-recoverable tax: $13,738) $210,000

Freight and insurance in transit 3,000

Installation and testing labour costs (using Munich's own labour) 2,600

Materials cost for testing 300

Insurance premium on the machinery for its first year of operation 1,100

Consultant used in acquisition of the machinery 6,400

Lost revenue due to downtime during installation of the machinery 4,500

Estimated asset retirement obligation (ARO) for the machinery 17,580

Imputed general interest costs on equity financing 3,700

What is the total cost for the machinery?

a) $215,900

b) $239,880

c) $243,580

d) $244,380.

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