Question
Sherrie Company purchased equipment and the following costs were associated with the purchase: Price of the equipment $87,000 Sales taxes $2,700 Shipping Insurance $540 Annual
Sherrie Company purchased equipment and the following costs were associated with the purchase:
Price of the equipment $87,000
Sales taxes $2,700
Shipping Insurance $540
Annual Maintenance Costs $3,200
Installation and testing $1,550
What amount should be recorded as the cost of the equipment?
| a. | $94,990 | |
| b. | $91,790 | |
| c. | $90,240 | |
| d. | $87,000 |
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
13th Edition
978-0697789938
