Question

On March 1, Wright Company purchased new equipment for $58,500 by paying cash. Other costs associated with the equipment were: transportation costs, $2,700; sales tax paid $4,700; and installation cost, $4,200. At what amount will the equipment be recorded on a balance sheet

Answer 1

Answer:

$70,100

Explanation:

The computation of the equipment recorded on a balance sheet is shown below:

= Purchase of new equipment + transportation cost + sales tax paid + installation cost

= $58,500 + $2,700 + $4,700 + $4,200

= $70,100

We simply added the above four items so that the recorded value of an equipment could come