Question

A company purchased new equipment for $45,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,300; sales tax paid $3,100; and installation cost, $2,100. The cost recorded for the equipment was:

Answer 1

the cost recorded for the equipment is $52,500

Step-by-step explanation:

The computation of the cost recorded for the equipment is shown below:

The Cost of equipment is

= Purchase price + Transportation cost + Sales tax + Installation cost

= $45,000 + $2,300 + $3,100 + $2,100

= $52,500

Hence, the cost recorded for the equipment is $52,500

The same is to be considered by applying the above formula