Airbury Company acquired manufacturing equipment at an invoice price of $80,000 and paid $750 to have it delivered to the factory. $400 was spent to repair a door that was damaged while installing the equipment. At what amount should this equipment be recorded on the company's books?
A) $80,400
B) $80,000
C) $80,750
D) $81,150

Question

Quizplus · Accepted Answer

The cost of the equipment includes the invoice price, delivery cost and any necessary repairs to get it in working condition. Therefore, the cost of the equipment should be recorded as $80,000 (invoice price) + $750 (delivery cost) + $400 (repair cost) = $80,750.

Airbury Company Acquired Manufacturing Equipment at an Invoice Price of $80,000