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On March 1, Chapin Company Purchased a New Stamping Machine

Question 9

Multiple Choice

On March 1, Chapin Company purchased a new stamping machine for $5,000. Chapin 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) $5,500
D) $5,600

Correct Answer:

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