The Blue Moon Motel has purchased a new computer for its own use.

Using the following information, determine the proper amount to be capitalized in the asset account Eqipment.

The invoice includes the price of the computer, the sales tax, and maintenance.

Invoice price of eqipment $10,000

Sales tax on purchase (4% as shown on invoice) 400

Terms of Sale: 2/10, n/30

(Assume the invoice will be paid within the discount period)

Freight in paid 300

Speeding ticket given to our truck driver while operating equipment 25

Installation costs 150

Maintenance contract- 2 years 2,000