A company purchased new equipment for $42,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,200; sales tax paid $3,000; and installation cost, $3,400. The cost recorded for the equipment was:

Question

Business

Ernest

13 June, 01:27

A company purchased new equipment for $42,000. The company paid cash for the equipment. Other costs associated with the equipment were: transportation costs, $2,200; sales tax paid $3,000; and installation cost, $3,400. The cost recorded for the equipment was:

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Answers (1)

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Snowy · Answer 1

The cost of the equipment recorded is $50,600

Explanation:

In this question, we are to calculate the amount recorded for an equipment purchased by a company.

To calculate this amount, we simply add the original cost and all other costs incurred to get the equipment in place.

Mathematically we have;

42,000 + 2,200 + 3,000 + 3,400 = $50,600