Question
Equipment was purchased for $50,000. Freight charges and insurance while in transit totaled $900 and sales tax was $500. Insurance, taxes, and maintenance costs for
Equipment was purchased for $50,000. Freight charges and insurance while in transit totaled $900 and sales tax was $500. Insurance, taxes, and maintenance costs for the first year of use were $3,000. What is the cost of the equipment?
| a. | $54,400 | |
| b. | $51,400 | |
| c. | $50,500 | |
| d. | $50,000 | |
| e. | none of the above |
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Montgomery Auditing Continuing Professional Education
Authors: Patrick J. McDonnell, Barry N. Winograd, James S. Gerson, Henry R. Jaenicke, Vincent M. O'Reilly
12th Edition
0471346055, 978-0471346050
