A company purchased a commercial dishwasher by paying cash of $5,300. The dishwasher's fair value on the date of the purchase wa

Question

4 years ago

12

A company purchased a commercial dishwasher by paying cash of $5,300. The dishwasher's fair value on the date of the purchase wa

s $5,700. The company incurred $320 in transportation costs, $210 installation fees, and paid a $230 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher

Business

1 answer:

Oksana_A [137] · Answer 1 · 2021-12-20T17:26:20+03:00

Answer:

$5,830

Explanation:

Relevant data provided

Cash paid = $5,300

Transportation cost = $320

Installation fees = $210

The computation of the amount that will record the dishwasher is shown below:-

Total cost = Cash paid + Transportation cost + Installation fees

= $5,300 + $320 + $210

= $5,830

Therefore for computing the total cost we simply applied the above formula and ignore all other values as they are not relevant.