Q1) Tellor INC bought new machinery to improve its production process. Categorize each of the given expenditures incurred last year as capital expenditure (CE) or immediate expense (IE).
a. $4,200 purchase price.
b. $2,520 sales tax paid on the purchase price.
c. $4,000 transportation cost.
d. $1,850 installation.
e. $385 training of personnel for initial operation of machinery.
f. $6,855 for wages paid to employees that operated machinery in production.
g. $280 lubrication after the machinery is placed in service.
h. $150 ordinary repairs to maintain machinery in working order.
Provide value of new machinery, and prepare financial statement in which it will be shown at fiscal year.