Question

Wiley Company purchased new equipment for $60,000. Wiley paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,000; sales tax paid $3,000; and installation cost, $2,500. The cost recorded for the equipment was: $61,000. $66,500. $64,000. $60,000.

Answer 1

b. $66,500

Step-by-step explanation:

Particulars Amount

Purchase cost $60,000

Transportation cost $1,000

Sales tax paid $3,000

Installation cost $2,500

Total cost $66,500

So, the cost recorded for the equipment will be $66,500