Final answer:
The acquisition cost of the equipment for Oriole Company is the sum of the cash price, sales taxes, insurance during transit, and installation and testing costs, totaling $87,010. Option 3 is correct answer.
Step-by-step explanation:
The acquisition cost of equipment for Oriole Company would include all expenses necessary to get the equipment ready for its intended use. This would normally include the cash price of the equipment, any sales taxes paid, insurance during transit, and costs related to installation and testing. To calculate the total acquisition cost, one would add up these individual costs:
- Cash price: $82,000
- Sales taxes: $3,400
- Insurance during transit: $770
- Installation and testing: $840
When these amounts are summed up, the total acquisition cost is:
$82,000 + $3,400 + $770 + $840 = $87,010
Therefore, Oriole Company will record the acquisition cost of the equipment as $87,010, which corresponds to option 3 in the provided choices.