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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

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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 O $43,400 O $43,900 O $43,850 O$43,150 O $43,600

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