Question
A construction company purchased a piece of equipment with a price of $100,000 on March 1 of the current year. The amounts are related to
A construction company purchased a piece of equipment with a price of $100,000 on March 1 of the current year. The amounts are related to the equipment purchase. Match the items and explain how each item should be accounted for.(Choices may be used more than once.) which is a item should be included as part of the cost of the equipment.
and which itemz should be considered a revenue expenditure.
$3,000 freight costs were paid to ship the equipment from the manufacturer.
The cash purchase was made on March 8 with terms of 2/10, net 30.
During the installation, the equipment was damaged and repair costs of $2,000 were incurred.
A state agency required that a pollution-control device be installed on the equipment at a cost of $5,000.
label all 4
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