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Sanad Company purchased equipment and below are the information related to this transaction: $200 cost, 7% sales tax $10 to transport to plant, $5 storage

Sanad Company purchased equipment and below are the information related to this transaction:

  1. $200 cost, 7% sales tax
  2. $10 to transport to plant, $5 storage cost (plant not ready)
  3. $3 labor, $2 materials to calibrate machine. $4recovered from trial run production
  4. Used at 50% of capacity: costs = $50, sales = $55
  5. $11 to consultant for services related to choice of machine and calibration
  6. $1 interest cost during one month storage

Based on the above information, the equipment cost is

a.

All options are not correct

b.

129

c.

236

d.

200

e.

224

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