1. On February 26, B&B purchased equipment with an invoice cost of $78,000. The company paid 8.5% sales taxes on the invoice cost and an additional $3,500 to ship the equipment to the B&Bs Lakewood facilities. On February 28, B&B hired an outside company to train its employees on the new equipment for a cost of $1,800. Monthly depreciation is $5,000 and insurance cost is $300.

How much is the capitalized cost of the equipment for B&B and what financial statement should it appear on?

A. $95,230 and Balance Sheet

B. $82,870 and Income Statement

C. $88,760 and Income Statement

D. $89,930 and Balance Sheet