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Cost of Plant Asset
Amigos, Inc., purchased a used piece of heavy equipment for $30,000. Delivery of the e quipment to Amigos’ business site cost $750. Expenditures to recondition the equipment and prepare it for use totaled $2,230. The maintenance for the first year Amijo owned the equipment was $1,370. Determine the cost that is the basis for calculating annual depreciation on the equipment.
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