Question

Wiley Company purchased new equipment for $60,000. Wiley paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $1,000; sales tax paid $3,000; and installation cost, $2,500. The cost recorded for the equipment was: $61,000. $66,500. $64,000. $60,000.

Answer 1

Answer:

b. $66,500

Explanation:

Particulars                   Amount

Purchase cost              $60,000

Transportation cost     $1,000

Sales tax paid              $3,000

Installation cost            $2,500

Total cost                      $66,500

So, the cost recorded for the equipment will be $66,500