Lump-sum purchase (Learning Objective 2) 5–10 min.

Kamaplast Company purchased factory equipment for $53,000. Other costs incurred were freight costs, $1,200; installation, $2,000; labor costs in testing equipment, $500;

oil lubricants and supplies to be used with equipment, $600; fire insurance policy covering equipment, $1,300. Compute the acquisition cost of the equipment.

AppendixLO1