Worthington Chandler Company purchased equipment for $10,000.Sales tax on the purchase was $500.Other costs incurred were freight charges of $200, repairs of $350 for damage during installation, and installation costs of $225.What is the cost of the equipment?

Question

Quizplus · Accepted Answer

The cost of the equipment would include the original purchase price of $10,000, plus the sales tax of $500, plus the additional costs incurred, which include freight charges of $200, repairs of $350, and installation costs of $225.

So, the total cost of the equipment would be:

$10,000 + $500 + $200 + $350 + $225 = $10,925

Therefore, the best choice is C.

Worthington Chandler Company Purchased Equipment for $10,000