Question

Jolly Giant Burgers purchased a commercial dishwasher by paying cash of $8,000. The dishwasher's fair value on the date of the purchase was $10,000. The company incurred $600 in transportation costs, $500 installation fees, and paid $300 annual insurance on the equipment. For what amount will Jolly Giant Burgers record the dishwasher?

Answer 1

$9,100

Step-by-step explanation:

Calculation for what amount will Bahama record the dishwasher

Using this formula

Amount to record

dishwasher=Cash+Transportation costs+Installation fees

Let plug in the formula

Amount to record dishwasher=$8,000 + $600 + $500

Amount to record dishwasher = $9,100

Therefore the Amount to record dishwasher will be $9,100