Corrieten Company purchased equipment and incurred these costs:

Cash price $24,000 Sales taxes 1,200 Insurance during transit 200 Installation and testing 400 Total costs $25,800 What amount should be recorded as the cost of the equipment?

(a) $24,000.

(c) $25,400.

(b) $25,200.

(d) $25,800.

AppendixLO1