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1. 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?
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