https edugen.willeyplus.com/edugen/It)/main.uni-WileyPLUS Kimmel, Accounting, 6e
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https edugen.willeyplus.com/edugen/It)/main.uni-WileyPLUS Kimmel, Accounting, 6e Help I System Announcements CALCULATOR PRENTER VERSDON BACK Multiple Choice Question 69 Crane Company purchased equipment on January 1 at a list price of $135000, with credit terms 4/10, n/3o. Payment was made within the discount period. Crane 000 sales tax on the equipment, and paid installation charges of $1800. Prior to installation, Crane paid $4100 to pour a concrete slab on which to place the What is the total cost of the new equipment? O $140800. O $134900. O $139000. O $13950o. Click if you would like to Show Work for this question: Open Show Work SAVE FOR LATER SUBMIT ANSWER Question Attempts: 0 of 1 usedExplanation / Answer
The total cost of the equipment will be (a) $140,800
It will include the purchase price, sales tax and installation charges.The cost incurred to pour a concrete slab was before installation and hence will not be a part of the cost of the equipment. Cost of the asset includes all such costs which are necessary to bring the asse to its intended use.
So total cost = Purchase price + Sales tax + Installation charges
$135,000 + 4,000 + 1,800 = $140,800
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