Question
Prince Company purchased a machine and the following costs were incurred: * Cash price $40,000 * Sales taxes $2,600 * Freight costs $50 * Insurance
Prince Company purchased a machine and the following costs were incurred:
* Cash price $40,000
* Sales taxes $2,600
* Freight costs $50
* Insurance during transit $150
* Two year insurance coverage after the machine was placed in service $1,200
* Testing of the machine $300
Prince should record the acquisition cost of the machine as:
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Accounting And Financial Management For Residential Construction
Authors: Emma Shinn
5th Edition
0867186356, 978-0867186352
