Question

gooQS 8-1 Cost of plant assets LO C1 Kegler Bowling buys scorekeeping equipment with an invoice cost of $160,000. The electrical work required for the installation costs $16,800. Additional costs are $3,360 for delivery and $11,530 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,550. What is the total recorded cost of the scorekeeping equipment

Answer 1

$180,160

Step-by-step explanation:

Calculation of Cost of scorekeeping equipment

Purchase Price $160,000

Installation Cost $16,800

Delivery Cost $3,360

Total Cost $180,160

Note Sales Tax and Costs incurred subsequently after asset is put to use is excluded from Cost of Asset.

Therefore,

the total recorded cost of the scorekeeping equipment is $180,160.