QUESTION 7 Sparrow Company purchased equipment and these costs were incurred * Cash price $40,000 * Sales taxes 2.600 * Testing and installation 500 * Insurance covering the asset for two years 500 * Freight costs 250 * Insurance during transit 50 Sparrow should record the acquisition cost of the equipment as: $43.400 $43.900 $43.850 $43.150 $43.600