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6 September, 07:12

Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes $3,600 Insurance during transit $640 Installation and testing $860 Total costs $60,100 Rodgers will record the acquisition cost of the equipment as

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  1. 6 September, 08:08
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    total cost of the equipment to be recognized in book will be $60,100

    Explanation:

    given data

    cash price = $55,000

    Sales taxes = $3,600

    Insurance = $640

    Installation and testing = $860

    Total costs = $60,100

    solution

    we know that as cost of equipment that asset include all expenditure necessary to bring the asset to get ready for condition

    So all expense including sales tax and insurance and the transportation and installation and the testing necessary to bring the asset in put to use condition.

    so that here total cost of the equipment to be recognized in book will be $60,100
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Home » Business » Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes $3,600 Insurance during transit $640 Installation and testing $860 Total costs $60,100 Rodgers will record the acquisition cost of the equipment as
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