To which account should the amount of sales tax paid on the purchase of new machinery be debited?

Question

Quizplus · Accepted Answer

The amount of sales tax paid on the purchase of new machinery should be debited to the machinery account because it is considered part of the cost of acquiring the machinery. This cost is capitalized, meaning it is added to the asset's value on the balance sheet and depreciated over the useful life of the machinery.

To Which Account Should the Amount of Sales Tax Paid