Question

Danube Corp. purchased a used machine for $21,000. The machine required installation costs of $6000 and insurance while in transit of $1800. At which of the following amounts would the machine be recorded?
A. $28,800
B. $21,000
C. $27,000
D. $22,800

Answer 1

Answer:

$28,800

Explanation:

Danube corporation bought a new machine for $21,000

The machine required $6,000 as installation costs

$1,800 was paid as insurance while in transit

Therefore, the amount at which the machine would be recorded can be calculated as follows

= $21,000+$6,000+$1,800

= $28,800

Hence the machine would be recorded at $28,800