Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $360,000. Shipping costs totaled $15,000. Foundation work to house the centrifuge cost $8,600. An additional water line had to be run to the equipment at a cost of $2,400. Labor and testing costs totaled $6,600. Materials used up in testing cost $2,700. The capitalized cost is

The capitalized cost of a high-speed industrial centrifuge is $395,300‬.

Explanation:

The capitalized cost of the high speed industrial centrifuge can be calculated by adding all the expenses that are spent on the centrifuge.

Cost of centrifuge= $360,000

Shipping cost= $15,000

Foundation work to house the centrifuge cost= $8,600

Additional water line cost= $2,400

Labor and testing costs= $6,600

Materials cost= $2,700

Capitalized cost=Sum of all the expenses spent on centrifuge

                           =360,000+15,000+8,600+2,400+6,600+2,700

                           =395,300‬

The capitalized cost of the high speed industrial centrifuge= $395,300.

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