Cornerstone Exercise 7-18 (Algorithmic) Acquisition Cost Cox Company recently purchased a machine by paying $9,800 cash and signing a 6-month, 10% note for $10,000. In addition to the purchase price, Cox incurred the following costs related to the machine: freight charges, $800; interest charges, $500; special foundation for machine, 400, installation costs, $1,100 Required: Determine the cost of the machine. 22,600X Feedback Check My Work The cost of a fixed asset is any expenditure necessary to acquire the asset and to prepare the asset for use. These CE 7-18 The cost of a fixed asset is any expenditure necessary to acquire the asset and to prepare it for use. Therefore, the cost of the machine is $20,800 ($8,500 $10,000+ $800 $400 + $1,100). Interest on borrowed funds is not added to the purchase price of an asset. Interest is generally viewed as resulting from a financing decision rather than from the decision to acquire the asset