Worthington Chandler Company purchased equipment for $36,000. Sales tax on the purchase was $2,400. Other costs incurred were freight charges of $600, repairs of $350 for damage during installation, and installation costs of $675. What is the cost of the equipment?

Question

Quizplus · Accepted Answer

The cost of the equipment is the sum of the purchase price, sales tax, and all other costs incurred. 
Purchase price + sales tax + freight + repairs + installation = Cost of Equipment
$36,000 + $2,400 + $600 + $350 + $675 = $39,675

Worthington Chandler Company Purchased Equipment for $36,000