Question

A company purchased new equipment for $48,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,200; sales tax paid $2,500; and installation cost, $1,700. The cost recorded for the equipment was:___________

Answer 1

Answer:

The cost recorded will be $53,400

Explanation:

In this question, we are to give the value of the amount recorded as the cost of the new equipment.

By simply doing some additions, we will be okay.

mathematically, this would be

Cost of equipment recorded = cost of equipment + transportation cost + sales tax + installation cost = 48,00 + 1,200 + 2,500 + 1,700 = $53,400