Question

Kegler Bowling installs automatic score-keeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. It is estimated that the equipment could be salvaged five years from now at $55,000. What is the total recorded cost of the automatic score-keeping equipment

Answer 1

$229,550

Step-by-step explanation:

The computation of the total recorded cost is shown below:

Particulars Total cost Included or Excluded Machinery Expense

Invoice cost $190,000 Included $190,000

Electrical work

required

for installation $20,000 included $20,000

Delivery costs $4,000 included $4,000

Sales tax $13,700 included $13,700

Repair costs $1,850 excluded $1,850

Total $229,550 $227,700 $1,850

The invoice cost, electrical cost, delivery cost, sales tax included in the machinery and the repair cost is an expense so it come under the expense