Final answer:
The total cost to be debited to the asset account for the new machine is $100,426, which includes the purchase price, transportation, installation, and special acquisition fees.
Step-by-step explanation:
The journal entry to record the acquisition of a new machine would include a debit to the asset account for the total cost of acquisition, which is the sum of the purchase price, transportation costs, installation costs, and special acquisition fees. The calculation is as follows:
- Purchase Price: $81,770
- Transportation Costs: $9,685
- Installation Costs: $6,299
- Special Acquisition Fees: $2,672
The acquisition of a new machine with a purchase price of $81,770, transportation costs of $9,685, installation costs of $6,299, and special acquisition fees of $2,672 would be journalized with a debit to the asset account. The debit amount would be equal to the total costs incurred, which is $81,770 + $9,685 + $6,299 + $2,672 = $100,426. So, the asset account would be debited for $100,426.When combined, these costs total $100,426, which is the amount that should be debited to the asset account for the machine. This entry reflects that the asset's cost includes all expenditures necessary to acquire the asset and prepare it for its intended use.