Inclusion in Property, Plant, and Equipment – Which of the following does a company include in property, plant, and equipment on the balance sheet?

1. Idle equipment awaiting sale

2. Land held for future use as a plant site

3. Land held for investment

4. Deposits on machinery not yet received

5. Progress payments on building being constructed by a contractor

6. Fully depreciated assets still being used

7. Leasehold improvements

8. Assets leased to others

Acquisition Costs – The Voiture Company manufactures compact, energy efficient cars. On April 1, it purchased a machine for its assembly line at a contract price of $200,000 with terms of 2/10, n/30. The company paid the contract price on April 8 and also incurred installation and transportation costs of $5,000, sales tax of $10,000, and testing costs of $2,000. During testing the machine was accidentally damaged, so the company had to pay $1,000 to repair it.

Required

Prepare the journal entry to record the acquisition of the machine.