Whole Grain Bakery purchases an industrial bread machine for $20,000. In addition to the purchase price, the company makes the following expenditures: freight, $1,000; installation, $2,000; testing, $500; and property tax on the machine for the first year, $400. What is the initial cost of the bread machine

Total cost of the machine = $23500

Explanation:

given data

Purchase price = $20,000

Freight expenses = $1,000

Installation = $2,000

Testing = $500

property tax = $400

solution

we get here Total cost of the machine that is express as

Total cost of the machine = purchase price + fright expenses + installation + testing ... 1

put here value and we get

Total cost of the machine = $20,000 + $1,000 + $2,000 + $500

solve it we get

Total cost of the machine = $23500