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Maru [420]
3 years ago
8

Runge Company purchased machinery on January 1 at a list price of $300,000, with credit terms 2/10, n/30. Payment was made withi

n the discount period. Runge paid $15,000 sales tax on the machinery and paid installation charges of $5,300. Prior to installation, Runge paid $12,000 to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery?
Business
1 answer:
serg [7]3 years ago
5 0

Answer:

The correct answer is $326,300.

Explanation:

According to the scenario, the computation of the given data are as follows:

List price = $300,000

Discount = 2%

So, Price after discount = $300,000 × 98% = $294,000

Sales tax = $15,000

Installation Charges = $5,300

Concrete slab = $12,000

So, we can calculate the Total cost by using following formula:

Total cost = Price after discount + Sales tax + Installation Charges + Concrete slab

=  $294,000 + $15,000 + $5,300 + $12,000

= $326,300

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