Rizio Co. purchases $12,500, terms 2/10, n/60,

FOB shipping point. Rizio paid within the discount period and took the $250

discount. Transportation costs of $360 were paid by Rizio. The machine required

mounting and power connections costing $895. Another $475 is paid to assemble the

machine, and $40 of materials are used to get it into operation. During installation,

the machine was damaged and $180 worth of repairs were made. Compute the cost

recorded for this machine.