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12 July, 07:50

Yocum Company purchased equipment on January 1 at a list price of $120,000 and received a $2,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $1,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?

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  1. 12 July, 08:51
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    The correct answer is $129,360.

    Explanation:

    According to the scenario, the given data are as follows:

    List price of equipment = $120,000

    Cash discount = $2,400

    sales tax = $6,000

    Installation charges = $1,760

    concrete slab = $4,000

    So, we can calculate the total cost by using following formula:

    Total cost = $120,000 - $2,400 + $6,000 + $1,760 + $4,000

    = $129,360
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