Question

Wiley Company purchased new equipment for $42,000. Wiley paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $3,000; sales tax paid $2,400; and installation cost, $2,300. The cost recorded for the equipment was:

Answer 1

Answer: $49,700

Explanation:

Given that,

Purchased new equipment = $42,000

Transportation costs = $3,000

Sales tax paid = $2,400

Installation cost = $2,300

Cost recorded for the equipment = purchased new equipment + Transportation costs + Sales tax paid + Installation cost

                                                       = $42,000 + $3,000 + $2,400 + $2,300

                                                       = $49,700