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Billy Company purchased equipment and incurred the following costs: Cash price $36,000 Freight - FOB shipping point $1,000 Insurance during transit $200 Annual insurance policy

Billy Company purchased equipment and incurred the following costs:

Cash price $36,000

Freight - FOB shipping point $1,000

Insurance during transit $200

Annual insurance policy $500

Installation and testing $500

What amount should be recorded as the cost of the equipment?

$38,200

$37,700

$37,600

$36,700

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