Question

Rains Company purchased equipment on January 1 at a list price of $75,000, with credit terms 2/10, n/30. Payment was made within the discount period. Rains paid $3,750 sales tax on the equipment, and paid installation charges of $1,320. Prior to installation, Rains paid $3,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?a. $78,750.b. $81,570.c. $83,070.d. $75,750.

Answer 1

Answer:

B. $81,570.

Explanation:

(75,000 x 98%) + 3,750 + 1,320 + 3,000 = 81,570.