Yang Company purchased equipment on January 1 at a list price of ¥500,000, with credit terms 2/10, n/30.Payment was made within the discount period and Yang was given a ¥10,000 cash discount.Yang paid ¥25,000 sales tax on the equipment, and paid installation charges of ¥8,800.Prior to installation, Yang paid ¥20,000 to pour a concrete slab on which to place the equipment.What is the total cost of the new equipment?

Question

Quizplus · Accepted Answer

List price of equipment = ¥500,000
Cash discount = ¥10,000 (2% of ¥500,000)
Amount paid after discount = ¥490,000
Sales tax = ¥25,000
Installation charges = ¥8,800
Cost of concrete slab = ¥20,000
Total cost of new equipment = ¥490,000 + ¥25,000 + ¥8,800 + ¥20,000 = ¥543,800. 
Therefore, the correct answer is B.

Yang Company Purchased Equipment on January 1 at a List