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Presto Company purchased equipment and these costs were incurred: Cash price $45,000 Sales taxes 3,600 Insurance during transit 640 Installation and testing 860 Total costs

Presto Company purchased equipment and these costs were incurred:

Cash price $45,000

Sales taxes 3,600

Insurance during transit 640

Installation and testing 860

Total costs $50,100

Presto will record the acquisition cost of the equipment as

a. $45,000.

b. $48,600.

c. $49,240.

d. $50,100.

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