Question

Bonita Industries purchased equipment for $46400. Sales tax on the purchase was $2784. Other costs incurred were freight charges of $696, repairs of $406 for damage during installation, and installation costs of $774. What is the cost of the equipment?a. $12,000.00.

b. $13,530.00.
c. $12,600.00.
d. $13,110.00.

Answer 1

This is what I think
Cost Of the Equipment = $ 51,060
Step-by-step explanation:
Equipment = $46400.
Add
Sale tax= $ 2784
Freight charges $696
Repairs $406
Installation costs $774
Cost Of the Equipment = $ 51,060
The cost of equipment includes all charges that makes it ready for use. These maybe the installation charges the sales tax paid, freight charges any repairs on damage during installation.
All costs incurred to make the equipment operational are included in the cost of the machinery.