Question

Vaughn Manufacturing purchased equipment for $39200. Sales tax on the purchase was $2352. Other costs incurred were freight charges of $588, repairs of $343 for damage during installation, and installation costs of $657. What is the cost of the equipment

Answer 1

Answer:

the cost of the equipment is $42,979

Explanation:

The computation of the cost of the equipment is as follows:

= Purchase value of an equipment + sales tax on the purchase + other cost incurred + installation cost

= $39,200 + $2,352 + 588 + $657

= $42,979

Hence, the cost of the equipment is $42,979