Bahama Catering purchased a commercial dishwasher by paying cash of $8,000.The dishwasher's fair value on the date of the purchase was $10,000.The company incurred $600 in transportation costs,$500 installation fees,and paid $300 annual insurance of the equipment.For what amount will Bahama record the dishwasher?

Question

Quizplus · Accepted Answer

The cost of the dishwasher for Bahama Catering would be $8,000 (cash paid), plus transportation costs of $600 and installation fees of $500, totaling $9,100. The annual insurance of $300 would be considered as an expense and would not affect the cost of the dishwasher. Therefore, the correct amount to record for the dishwasher would be $9,100.

Bahama Catering Purchased a Commercial Dishwasher by Paying Cash of $8,000.The