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What amount should the equipment be capitalized on sandhill

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Sandhill Ltd. purchased some new manufacturing equipment for use in its factory. Following is a list of the various items paid by Sandhill related to the equipment:

Item                                                                                     Amount

Purchase price of equipment                                   $176,000
GST on equipment                                                     8,800
Transportation to Sandhill's factory                               24,500
GST on transportation                                                    1,225
Cost of installation                                                         80,500
GST on installation cost                                                       4,025
Maintenance costs for first year                                          5,480
Insurance premiums for first year of use of machinery             1,150
Insurance premiums for transport of machinery                         150

Problem 1: At what amount should the equipment be capitalized on Sandhill's books? (Note: GST is refundable by the government.)

Reference no: EM132650567

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