Question

On March 1, Bartholomew Company purchased a new stamping machine with a list price of $81,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $2,400; sales tax paid, $5,320; installation costs, $1,550; routine maintenance during the first month of operation, $2,300. What is the cost of the machine

Answer 1

$86,220

Step-by-step explanation:

Calculation for the cost of the machine

Using this formula

Cost of the machine=New stamping machine-(New stamping machine*Discount percentage)+Transportation+Sales tax +Installation

Let plug in the formula

Cost of the machine=$81,000 - ($81,000 x 5%) + $2,400 + $5,320 + $1,550

Cost of the machine=$81,000 - $4,050 + $2,400 + $5,320 + $1,550

Cost of the machine=$86,220

Therefore the cost of the machine is $86,220