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18 December, 11:45

Sunland Company purchased equipment for $32500. Sales tax on the purchase was $1550. Other costs incurred were freight charges of $420, repairs of $700 for damage during installation, and installation costs of $440. What is the cost of the equipment? A. $35610. B. $34050. C. $32500 D. $34910

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Answers (2)
  1. 18 December, 13:22
    0
    Total cost of equipment = $34,870

    Explanation:

    Given dа ta:

    purchase Cost of equipment = $32500

    salex tax on item is $1550

    freight charge $420

    repair cost $700

    installation = $400

    cost of equipment calculated as follow

    Total cost of equipment = purchase cost + sales tax on item + freight charges + installation cost

    Total cost of equipment = 32500 + 1550 + 420 + 400

    Total cost of equipment = $34,870
  2. 18 December, 14:02
    0
    D. $34910

    Explanation:

    The computation of the equipment cost is shown below:

    = Purchase value of equipment + sales tax on purchase + freight charges incurred + installation cost

    = $32,500 + $1,550 + $420 + $440

    = $34,910

    For computing the equipment cost we added the purchase value, sales tax, freight charges and the installation cost

    The damages cost is not a part of the cost of equipment
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Home » Business » Sunland Company purchased equipment for $32500. Sales tax on the purchase was $1550. Other costs incurred were freight charges of $420, repairs of $700 for damage during installation, and installation costs of $440.
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