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A company purchases a new machine for $60,000. it costs $6,000 to install and training costs for staff are $1,000. The machine has also to be tested first and the material costs for this test amount to $500. What is the cost of the machine in the SOFP?
The answer is 66500$
(60,000 + 6,000 + 500). Training costs are not to be included in the calculation because they fall under revenue expenditure, while the others fall under capital expenditure.Chimene is correct (even though she should not be answering on this forum 🙂 )
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