A company purchased a used machine for $80 000. The machine required installation costs of $8 000 and insurance while in transit of $500. At which of the following amounts would the equipment be recorded?

Question

Quizplus · Accepted Answer

The equipment should be recorded at its total cost, which includes the purchase price, installation costs, and insurance while in transit. Therefore, $80,000 + $8,000 + $500 = $88,500.

A Company Purchased a Used Machine for $80 000