Miscellaneous costs associated with the purchase of new equipmentinclude:

Insurance costs before the equipment is ready for use

$3,000

Maintenance costs before the equipment is ready for use

500

Insurance costs after the equipment is placed into service

1,800

Cost of trial run

900

Training costs for employees to learn how to use equipment

300

What is the amount assigned to the newequipment?

A.

$6,500

B.

$4,200

C.

$4,400

D.

$4,700