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Whole Grain Bakery purchases an industrial bread machine for $24,500. In addition to the purchase price, the company makes the following expenditures: freight, $1,450; installation, $2,900; testing, $950;
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Whole Grain Bakery purchases an industrial bread machine for $24,500. In addition to the purchase price, the company makes the following expenditures: freight, $1,450; installation, $2,900; testing, $950; and property tax on the machine for the first year, $490.Whole Grain Bakery purchases an industrial bread machine for $24,500. In addition to the purchase price, the company makes the following expenditures: freight, $1,450; installation, $2,900; testing, $950; and property tax on the machine for the first year, $490.

Required:
What is the initial cost of the bread machine?

User Deepak Pookkote
by
3.1k points

1 Answer

11 votes
11 votes

Answer:

$29,800

Step-by-step explanation:

Calculation to determine initial cost of the bread machine

INITIAL COST

Purchase Price: $24,500

Freight: $1,450

Installation: $2,900

Testing: $950

Total cost of the bread machine: $29,800

Therefore initial cost of the bread machine is $29,800

User Supawat Pusavanno
by
2.7k points
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