Cost of a Tangible Capital Asset}

Essex Country Club purchased a new tractor to be used for golf course maintenance. The tractor cost \(\$ 53,800\). Essex borrowed the purchase price from its bank on a one-year, \(7 \%\) note payable. Essex incurred the following costs:

\section*{Required:}
1. Compute the cost of the tractor.
2. CONCEPTUAL CONNECTION Explain why any costs were excluded from the cost of the tractor.
\section*{Problem

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Shipping costs Shipping insurance Calibration of cutting height $875 150 83