Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes $3,600 Insurance during transit $640 Installation and testing $860 Total costs $60,100 Rodgers will record the acquisition cost of the equipment as

Question

Business

Harper Nichols

18 April, 17:37

Rodgers Company purchased equipment and these costs were incurred: Cash price $55,000 Sales taxes $3,600 Insurance during transit $640 Installation and testing $860 Total costs $60,100 Rodgers will record the acquisition cost of the equipment as

+5

Answers (1)

Know the Answer?

Reid Lawrence · Answer 1

total cost of the equipment to be recognized in book will be $60,100

Explanation:

given data

cash price = $55,000

Sales taxes = $3,600

Insurance = $640

Installation and testing = $860

Total costs = $60,100

solution

we know that as cost of equipment that asset include all expenditure necessary to bring the asset to get ready for condition

So all expense including sales tax and insurance and the transportation and installation and the testing necessary to bring the asset in put to use condition.

so that here total cost of the equipment to be recognized in book will be $60,100