Question

Beaverton Lumber purchased milling equipment for $51,000. In addition to the purchase price, Beaverton made the following expenditures: freight, $3,100; installation, $4,600; testing, $3,600; personal property tax on the equipment for the first year, $1,300. What is the initial cost of the equipment

Answer 1

$62,300

Step-by-step explanation:

Calculation for the initial cost of the equipment

Initial cost of the equipment:

Purchase price$51,000

Freight $3,100

Installation $4,600

Testing $3,600

Total cost $62,300

Therefore the initial cost of the equipment will be $62,300