Answer:
$381,350
Step-by-step explanation:
Given that,
List price of machinery = $340,000
Discount = 3%
Sales tax paid on machinery = $35,750
Installation charges paid on machinery = $5,800
Amount paid to pour a concrete slab = $10,000
Firstly, the gross purchasing cost of machinery is determined. It is the cost of the machinery after deducting the discount from the listed price.
It is calculated as follows:
= Listed price - Discount value
= $340,000 - ($340,000 × 0.03)
= $340,000 - $10,200
= $329,800
Therefore, the total cost of the new machinery includes all of the expenses that are incurred to purchase, install and to setup the machinery.
Total cost of the new machinery:
= Gross purchasing cost of machinery + Sales tax on the machinery + Installation charges + Concrete slab
= $329,800 + $35,750 + $5,800 + $10,000
= $381,350