Select the account that would be increased to show each of the following costs.
-The sales taxes paid related to a machine purchased
A)Land
B)Land Improvements
C)Buildings
D)Machinery and Equipment
E)An Expense Account

Question

Quizplus · Accepted Answer

Sales taxes paid on a machine purchased should be added to the cost of the machine (Machinery and Equipment). This is because sales tax is considered as part of the cost of the asset and should not be expensed.

Select the Account That Would Be Increased to Show Each