On March 1, Chapine Company purchased a new stamping machine for $5,000. Chapine paid cash for the machine. Other costs associated with the machine were: transportation costs, $300; sales tax paid, $200; and installation cost, $100. What cost was recorded for the machine?
A) $5,000
B) $5,200
C) $5,600
D) $5,500

Question

Quizplus · Accepted Answer

The cost recorded for the machine will include the purchase price plus any additional costs incurred to get the machine up and running. Therefore, the total cost recorded for the machine will be $5,000 + $300 + $200 + $100 = $5,600 (Choice C).

On March 1, Chapine Company Purchased a New Stamping Machine