Question

A company purchased a commercial dishwasher by paying cash of $4,900. The dishwasher's fair value on the date of the purchase was $5,270. The company incurred $390 in transportation costs, $260 installation fees, and paid a $110 fine for illegal parking while the dishwasher was being delivered. For what amount will the company record the dishwasher

Answer 1

Answer: $5550

Explanation:

The amount that the company will record the dishwasher will be the amount the dishwasher was bought plus the transportation cost incurred on the dishwasher plus the installation fees. This will be:

= $4900 + $390 + $260

= $5550

Therefore, the amount that the company will record for the dishwasher is $5550