Question

Blossom Company purchased equipment on January 1 at a list price of $100000, with credit terms 2/10, n/30. Payment was made within the discount period. Blossom paid $3000 sales tax on the equipment and paid installation charges of $1500. Prior to installation, Blossom paid $3000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment

Answer 1

Answer:

the total cost of the new equipment is $105,500

Explanation:

The computation of the total cost of the new equipment is given below:

Total cost of the new equipment is

= Net price + Sales tax + Installation charges + Payment for concrete slab

= [$100,000 - ($100,000 × 2%)] + $3,000 + $1,500 + $3,000

= $105,500

Hence, the total cost of the new equipment is $105,500