A company purchased a special purpose machine on September 15 of the past year,and it was installed and ready to run on January 1 of this year.The following costs were incurred in the purchase and installation of the machine.Determine the total cost of the machine.

Special Purpose Machine

A special purpose machine is designed to perform a specific manufacturing or production task and is not versatile for other uses.

Installation Cost

Expenses associated with setting up or installing an asset for use, often capitalized and amortized over the asset's useful life.

Purchase Cost

Purchase cost includes all the expenses that a company incurs to acquire goods or services, including price, taxes, shipping, and handling fees.