Question
Acquisition Cost of Long-Lived Asset The following data relate to a firms purchase of a machine used in the manufacture of its product: Invoice price
Acquisition Cost of Long-Lived Asset
The following data relate to a firms purchase of a machine used in the manufacture of its product:
Invoice price $30,000
Applicable sales tax 2,000
Cash discount taken for prompt payment 400
Freight paid 260
Cost of insurance coverage on machine while in transit 125
Installation costs 3,000
Testing and adjusting costs 475
Repair of damages to machine caused by the firms employees 750
Prepaid maintenance contract for first year of machines use 300
Determine the acquisition cost of the machine.
Acquisition Cost = $Answer
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