Question

QS 8-1 Cost of plant assets LO C1 Kegler Bowling buys scorekeeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,850. What is the total recorded cost of the scorekeeping equipment

Answer 1

Answer: $227,700

Explanation:

The total recorded cost would include the actual cost of the equipment as well as every other cost that was incurred to transport the equipment and get it ready fir use.

Cost that will be recorded is therefore:

= Invoice cost + Installation cost + Delivery cost + Sales tax

= 190,000 + 20,000 + 4,000 + 13,700

= $227,700