Question 20 On January 1, Year 1, ABC Company purchased a piece of equipment with a list price of $100,000. The seller agreed to allow a 2% discount. Delivery terms were FOB shipping point and freight amounted to $1.500 ABC had to hire a specialist for $5,000 to setup the equipment. The equipment operator was paid a salary of $40,000 in Year 1 ABC took out two insurance policies The first cost $3,000 and covered the equipment during transport while the other cost $10,000 and covered the equipment during use throughout Year 1. The equipment had a 7 year useful life and an expected salvage value of $12.000. All costs are paid in cash Determine the amount to be capitalized in an asset account for the purchase of the equipment O $100,000 0198000 $99.500 $157,500 $107.500 Previous 61 esc 1 1 2 o W W tab A caps lock NO 13 S % 4 sx 5 MacBook Air 6 11 81 17 Sonepar ' B 9 E R T Y U 1 D shift fn > N 2 x * e control option command LL F G H J K C >> B N M