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Alex777 [14]
2 years ago
5

On May 1, Marie Company purchased new machinery for $70,000 plus 8% sales tax. The machinery was advertised for $72,000. Other c

osts associated with the machinery were: testing of the new machine, $2,000; delivery cost of $3,600; installation cost, $5,500; and hiring of a new employee to run the machine at $2,880/month. At what amount will the machinery be recorded on a balance sheet?
Business
1 answer:
ZanzabumX [31]2 years ago
4 0

Answer:

$86,700

Explanation:

The computation of the amount recorded for the machinery is shown below:

= Purchase value of the new machinery + sales tax + testing cost of new machine + delivery cost + installation cost

= $70,000 + $5,600 + $2,000 + $3,600 + $5,500

= $86,700

The sales tax is as follows

= $70,000 × 8%

= $5,600

We simply applied the above formula

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Answer:

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