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28 October, 00:29

Fogelberg Company purchased equipment for $12,000. Sales tax on the purchase was $600. Other costs incurred were freight charges of $240, repairs of $420 for damage during installation, and installation costs of $270. What is the cost of the equipment?

a $12,000.00

b $13,530.00

c $12,600.00

d $13,110.00

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  1. 28 October, 03:10
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    Answer : The correct option is, (d) $13,110.00

    Explanation : Given,

    Price when company purchased equipment = $12000

    Sales tax price = $600

    Freight charges = $240

    Damage charges = $420

    Installation costs = $270

    Now we have to determine the total cost of the equipment.

    Total cost of the equipment = Purchased price + Sales tax price + Freight charges + Installation costs

    Total cost of the equipment = $12000 + $600 + $240 + $270

    Total cost of the equipment = $13110.00

    Thus, the total cost of the equipment is, $13110.00
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