Danube Company purchased a used machine for $12,000.The machine required installation costs of $3000 and insurance while in transit of $1500.At which of the following amounts would the machine be recorded?

Question

Quizplus · Accepted Answer

The machine would be recorded at $16,500, which is the sum of the purchase price ($12,000), installation costs ($3,000), and insurance while in transit ($1,500). These are all considered necessary costs to bring the asset to its intended use.

Danube Company Purchased a Used Machine for $12,000