On March 1,Wright Company purchased new equipment for $50,000 by paying cash.Other costs associated with the equipment were: transportation costs,$1,000;sales tax paid $4,000;and installation cost,$2,500.At what amount will the equipment be recorded on a balance sheet?

Question

Quizplus · Accepted Answer

The equipment will be recorded at $57,500, which includes the purchase price ($50,000) plus transportation costs ($1,000), sales tax paid ($4,000), and installation cost ($2,500), totaling $57,500.

On March 1,Wright Company Purchased New Equipment for $50,000 by Paying