What cost amount will be capitalized after purchasing a new machine and repair cost?

Explanation:

Mark's Markers recently acquired a new machine for their manufacturing process, costing them $2,500 upfront. In addition to the machine's purchase price, they had to pay sales tax amounting to $150 and $200 for shipping charges.

One month later, a small part of the machine broke and required repair, which incurred a cost of $900. When determining the total cost amount that will be capitalized, we consider the initial purchase price of the machine along with any additional costs needed to make the machine functional.

Therefore, the cost amount that will be capitalized is the sum of the initial purchase price of $2,500, sales tax of $150, and shipping charges of $200, totaling to $2,850.