Question

Coronado Company purchased equipment and these costs were incurred: Cash price $64600 Sales taxes 4000 Insurance during transit 610 Installation and testing 840 Total costs $70050 Coronado will record the acquisition cost of the equipment as

Answer 1

$70,050

Step-by-step explanation:

The computation of the acquisition cost of the equipment is shown below:

= Cash price + sales tax + insurance during transit + installation and testing

= $64,600 + $4,000 + $610 + $840

= $70,050

We simply added the all given cost as it is included in the acquisition cost and the same is to be considered

Hence, the acquisition cost is $70,050