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Mrac [35]
3 years ago
12

Sunland Company purchased equipment for $32500. Sales tax on the purchase was $1550. Other costs incurred were freight charges o

f $420, repairs of $700 for damage during installation, and installation costs of $440. What is the cost of the equipment? A. $35610. B. $34050. C. $32500 D. $34910
Business
2 answers:
solmaris [256]3 years ago
6 0

Answer:

D. $34910

Explanation:

The computation of the equipment cost is shown below:

= Purchase value of equipment + sales tax on purchase + freight charges incurred + installation cost

= $32,500 + $1,550 + $420 + $440

= $34,910

For computing the equipment cost we added the purchase value, sales tax, freight charges and the installation cost

The damages cost is not a part of the cost of equipment

lisov135 [29]3 years ago
6 0

Answer:

Total cost of equipment = $34,870

Explanation:

Given data:

purchase Cost of equipment =$32500

salex tax on item is $1550

freight charge $420

repair cost $700

installation = $400

cost of equipment calculated as follow

Total cost of equipment = purchase cost + sales tax on item + freight charges + installation cost

Total cost of equipment = 32500+ 1550 + 420 + 400

Total cost of equipment = $34,870

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