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Brrunno [24]
3 years ago
15

Which if the following would be debited to the equipment account

Business
2 answers:
Minchanka [31]3 years ago
7 0

Answer:

The correct Choice is: B. In-transit insurance costs

Explanation:

The cost of machinery and equipment includes: • Purchase price (less any discounts) • Transportation (delivery) charges • Insurance while in transit • Sales and other taxes • Purchase commission • Installation costs • Cost of testing the asset before it is used After the asset is up and running, the company no longer debits insurance, taxes, and maintenance costs to the Equipment account. From that point on, insurance, taxes, repairs, and maintenance costs are recorded as expenses. (Financial Accounting, Kemp).

kozerog [31]3 years ago
4 0
I think the answer is a

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