Horizons,Inc.paid $232,500 for a machine shipped FOB shipping point.Freight costs totaled $4,500,the sales tax was $11,300,and installation amounted to $9,800,with an additional $1,600 spent to repair the machine after a worker dropped it during installation.The total cost of the machine for accounting purposes was:

Question

Quizplus · Accepted Answer

The total cost includes the purchase price, freight, sales tax, and installation costs. It excludes repair costs due to damage after purchase. Total cost = $232,500 + $4,500 + $11,300 + $9,800 = $258,100.