Ness Corporation purchased a machine with a cost of $100,000 and paid $500 in freight charges and $1,000 to have it installed.Ness failed to take advantage of a $2,000 discount it would have received if it had paid $98,000 cash within ten days of the purchase.How much is the cost of the machine?

Question

Quizplus · Accepted Answer

The cost of the machine is calculated as follows:
Purchase cost + Freight Charges + Installation Charges = Cost of the Machine
$100,000 + $500 + $1,000 = $101,500
Since Ness did not take advantage of the $2,000 discount, the cost of the machine remains at $101,500. Therefore, the answer is C.

Ness Corporation Purchased a Machine with a Cost of $100,000