Question

Ehrlich Bachman purchased new equipment for $60,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,000; sales tax paid $3,000; and installation cost, $2,500. The cost recorded for the equipment was:______

Answer 1

Answer: $66500

Step-by-step explanation:

The cost recorded for the equipment will be calculated thus:

Cost of equipment = $60000

Add: Transportation costs = $1,000

Add: Sales tax paid = $3,000

Add: Installation cost = $2,500.

Total cost = $66500

Therefore, the cost recorded for the equipment is $66500