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Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase: Purchase price $4,500,000 Cost to

Santa Rosa recently purchased a new boat to help ship product overseas. The following information is related to that purchase:

  • Purchase price $4,500,000
  • Cost to bring boat to production facility $25,000
  • Yearly insurance cost $25,000
  • Annual maintenance cost of $30,000
  • Received 8% discount on sales price

Determine the acquisition cost of the boat, and record the journal entry needed.

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