Woowee Company manufactures electric motorcycles. On April 1, it purchased a machine for its ...

Woowee Company manufactures electric motorcycles. On April 1, it purchased a machine for its assembly line at a contract price of $300,000 with terms of 2/10, n/30. Woowee paid the contract price on April 8 and also incurred installation and transportation costs of $5,000, sales tax of $18,000, and testing costs of $4,000. During testing, the machine was accidentally damaged, so the company had to pay $2,000 to repair it.

Required:
(a)What characteristics are necessary for a company to include an asset in the category of property, plant, and equipment?
(b)What is the capitalizable cost of the machine?