On October 1, 20X4, Shaw Corp. purchased a machine for $126,000 that was placed in service on November 30, 20X4. Shaw incurred a

Question

3 years ago

12

On October 1, 20X4, Shaw Corp. purchased a machine for $126,000 that was placed in service on November 30, 20X4. Shaw incurred a

dditional costs for this machine, as follows: Shipping $ 3,000 Installation 4,000 Testing 5,000 In Shaw's December 31, 20X4 Balance Sheet, the machine's cost should be reported as:A. $126,000B. $129,000C. $133,000D. $138,000

Business

1 answer:

vichka [17] · Answer 1 · 2021-12-28T17:49:25+03:00

Answer:

option (D) $138,000

Explanation:

Data provided in the question:

Purchasing cost of the machine = $126,000

Additional costs for this machine :

Shipping = $3,000

Installation = $4,000

Testing = $5,000

Now,

The cost of machine that should be reported

= Purchasing cost + Additional costs incurred

= $126,000 + $3,000 + $4,000 + $5,000

= $138,000

Hence,

The correct answer is option (D) $138,000