Steven company decided to purchase a new piece of equipment at the beginning of 2020, Steven paid the following costs: Purchase price $79,000, Sales taxes $12,500, assembling and testing costs $2,000, 3 years accident insurance coverage $6,000 in addition to shipping costs $9,000 and insurance during shipping coverage total of $1,220.

Answer the following:

1. What is the cost of the acquired asset to be recorded in Steven books at the beginning of 2020?

2. What is the journal entry to be recorded?