Question

A company purchased new equipment for $50,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,100; sales tax paid $2,400; and installation cost, $2,400. The cost recorded for the equipment was:

Answer 1

Answer:

Total cost recorded for equipment = $55,900

Explanation:

Given the following :

Purchase amount = $50,000

Transportation cost = $1,100

Sales tax = $2,400

Installation cost = $2,400

Total cost recorded for the equipment :

(Purchase cost + transport cost + sales tax + installation cost)

$(50,000 + 1,100 + 2,400 + 2,400)

= $55,900