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Unformatted text preview: then reconstruct a wall because the machine was too big to fit through the existing door $9 000 Required: Determine the cost of the new machine. Record your answer here: An example question: R&M verses Capitalization Chester Ltd: manufactures & installs fences and purchased machinery $150,000 by borrowing the cash. They acquired a bank loan at 6.5% pa simple interest, interest only in arrears payable 31 Dec annually. Machinery useful life 10 yrs Insurance during transit $1,500 paid cash Paid cash to spet contractor to install...
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