Question

Acquisition Cost Desert State University installed a HD video board with an invoice price of $5,000,000 in its football stadium. Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed ten S-tonas conditioning units at a total cost of $120,000 to keep the board cool in the desert heat.
Required:
Determine the cost of the video board.

Answer 1

Answer: $5,220,000

Explanation:

The cost of the video board will be the total amount spent on the video board. This will be:

Invoice price = $5,000,000

Add: Delivery and Installation costs = $100,000

Add: Air conditioning units = $120,000

Cost of the video board = $5,220,000

Therefore, the cost of the video board is $5,220,000