Fogelberg Company purchased equipment for $25,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $700 for damage during installation, and installation costs of $450. What is the cost of the equipment?

Question

Quizplus · Accepted Answer

The cost of the equipment includes the purchase price of $25,000, plus sales tax of $1,500, plus other costs of $400 + $700 + $450 = $1,550. So, the total cost of the equipment is $25,000 + $1,500 + $1,550 = $27,350. Therefore, the correct choice is C.

Fogelberg Company Purchased Equipment for $25,000