on january 1, 2016, ruby company purchased a piece of equipment with a list price of $60,000. the following amounts were related to the equipment purchase: terms of the purchase were 2/10, net 30. ruby paid for the purchase on january 8. freight costs of $1,000 were incurred. a state agency required that a pollution control device be installed on the equipment at a cost of $2,500. during installation, the equipment was damaged and repair costs of $4,000 were incurred. architect's fees of $5,900 were paid to redesign the work space to accommodate the new equipment. ruby purchased liability insurance to cover possible damage to the asset. the three-year policy cost $8,000. ruby financed the purchase with a bank loan. interest of $3,000 was paid on the loan during 2016.
