Question

A company purchased new equipment for $42,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,200; sales tax paid $3,000; and installation cost, $3,400. The cost recorded for the equipment was:

Answer 1

The cost of the equipment recorded is $50,600

Step-by-step explanation:

In this question, we are to calculate the amount recorded for an equipment purchased by a company.

To calculate this amount, we simply add the original cost and all other costs incurred to get the equipment in place.

Mathematically we have ;

42,000 + 2,200 + 3,000 + 3,400 = $50,600