A company purchased a used machine for $10,000. The machine required installation costs of $1,000 and insurance while in transit of $500. At which of the following amounts would the machine be recorded?

Question

Quizplus · Accepted Answer

The machine should be recorded at its total cost, which includes the purchase price, installation costs, and insurance while in transit. Therefore, the total cost is $10,000 + $1,000 + $500 = $11,500.

A Company Purchased a Used Machine for $10,000