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Aggie Company purchased a piece of equipment with an invoice price of $80,000 on March 1, 2019. Other information concerning the purchase include the following:
Aggie Company purchased a piece of equipment with an invoice price of $80,000 on March 1, 2019. Other information concerning the purchase include the following: (1) Shipping costs totaling $1,000 (2) Sales tax totaling $6,400 (3) Terms of the purchased were 3/20; net 60. The invoice was paid on March 15, 2019. (4) A state agency required that an anti-pollution device be installed on the equipment at a cost of $4,000. (5) During installation, the equipment was damaged and repair costs of $2,000 were incurred. (6) Aggie financed the purchase with a bank loan. Interest of $3,000 was paid on the loan during 2019. 5. What is the cost of the equipment? A. $87,400 B. $89,000 C. $91,000 D. $94,000 E. $87,000
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