Question

A company purchased new equipment for $42,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,700; sales tax paid $3,800; and installation cost, $2,400. The cost recorded for the equipment was:_______.a. $54,000.b. $61,500.c. $56,100.d. $58,900.

Answer 1

Answer:

$49,900

Explanation:

The cost to be recorded for an equipment as an asset is the total cost incurred in bringing the asset to a state and location where it is available for use.

Cost = $42,000 + $1,700 + $3,800 + $2,400

= $49,900

The cost recorded for the equipment was $49,900