On March 1, Bartholomew Company purchased a new stamping machine with a list price of $79,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $2,200; sales tax paid, $4,920; installation costs, $1,450; routine maintenance during the first month of operation, $2,100. What is the cost of the machine?

Question

Quizplus · Accepted Answer

The cost of the machine can be calculated as follows:
List price = $79,000
Discount (5%) = $3,950
Adjusted price = $79,000 - $3,950 = $75,050
Other costs = $2,200 + $4,920 + $1,450 + $2,100 = $10,670
Total cost = $75,050 + $10,670 = $83,620
Therefore, the best choice is D with the correct calculation of the total cost of the machine.

On March 1, Bartholomew Company Purchased a New Stamping Machine