On March 1,Bartholomew Company purchased a new stamping machine with a list price of $34,000.The company paid cash for the machine;therefore,it was allowed a 5% discount.Other costs associated with the machine were: transportation costs,$550;sales tax paid,$1,360;installation costs,$450;routine maintenance during the first month of operation,$500.What is the cost of the machine?

Question

Quizplus · Accepted Answer

Cost of machine = List price of $34,000 - Cash discount of $1,700 ($34,000 × 5%)+ Transportation costs of $550 + Sales tax of $1,360 + Installation costs of $450 = $34,660 The routine maintenance is not included in the cost of the machine;it is expensed.

On March 1,Bartholomew Company Purchased a New Stamping Machine with a List