Answer: $360,050
Explanation:
The total cost of a fixed asset refers to all the cash that was paid to acquire the asset, transport it and then install it.
Cost of the new machinery is therefore = Discounted cost price + Sales tax + Installation charges + Concrete slab
= (270,000 * (1 - 2%)) + 79,750 + 4,800 + 10,900
= 264,600 + 79,750 + 4,800 + 10,900
= $360,050
<em>Cost price was discounted by 2% as per the credit terms of 2/10 which means that there is a discount of 2% if the asset is paid for in 10 days. </em>
I guess the correct answer is Scientific Law.
Scientific Law is rule of nature that tells you what will happen under certain conditions.
Answer:
Total cost of front end loader in asset account $ 114,600
Explanation:
Computation of total costs of front end loader
List price of equipment $ 117,270
Discount on cash payment = 5.5 % ( $ 117,270 * 5.5 %) <u>$ ( 6,450)</u>
Net price of equipment $ 110,820
Freight in costs $ 2,790
Calibration costs <u>$ 990</u>
Total cost of front end loader in asset account $ 114,600
The other data items such as the loader salary and additional insurance
premium are annual costs and are thus not to be added to the cost of the equipment.