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ABC INC purchased new machinery in order to improve its production process. Classify each of the following expenditures incurred last year as a capital expenditure (CE) or an 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 the machinery.f. $6,855 for wages paid to employees that operated the machinery during production.g. $280 lubrication after the machinery is placed in service.h. $150 ordinary repairs to maintain the machinery in working order.Give the value of the new machinery, and list the financial statement in which it will be shown at fiscal year.
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