Question

A company purchased new equipment for $72,000. the company paid cash for the equipment. other costs associated with the equipment were: transportation costs, $1,600; sales tax paid $5,400; and installation cost, $3,700. the cost recorded for the equipment was: m

a. $72,000.
b. $73,600.
c. $82,700.
d. $79,000.

Answer 1

The cost recorded for the equipment is the sum of its purchase price and additional expenses: $72,000 + $1,600 + $5,400 + $3,700 = $82,700. Hence, the total cost is $82,700. Therefore correct option is C

Step-by-step explanation:

The cost recorded for the equipment includes not only the purchase price but also the additional expenses associated with making the equipment operational. These additional expenses include transportation costs, sales tax, and installation cost. To find the total recorded cost, we add these amounts to the purchase price:

• Purchase price: $72,000
• Transportation costs: $1,600
• Sales tax: $5,400
• Installation cost: $3,700

Adding these together, we get:

$72,000 + $1,600 + $5,400 + $3,700 = $82,700.

Therefore, the correct answer is $82,700, which is option c.