The debit for non-refundable provincial sales tax correctly calculated and paid on the purchase of machinery should be included in
A) Provincial Sales Tax Expense.
B) Machinery.
C) Accumulated Depreciation-Machinery.
D) Prepaid Provincial Sales Tax.

Question

Quizplus · Accepted Answer

The correct treatment for non-refundable provincial sales tax paid on the purchase of machinery is to include it in the cost of the machinery itself. This is because it is a cost directly attributable to acquiring the machinery and bringing it to its intended use.

The Debit for Non-Refundable Provincial Sales Tax Correctly Calculated and Paid