Equipment is acquired for $100,000.Freight costs are $1,800,sales tax amounted to $1,000.Maintenance during the first year of use cost $6,000.What is the cost of the equipment?

Question

Quizplus · Accepted Answer

The cost of the equipment includes the purchase price, freight costs, and sales tax, totaling $102,800 ($100,000 + $1,800 + $1,000). Maintenance costs are not included in the initial cost of the equipment.

Equipment Is Acquired for $100,000