A machine is purchased for $70,000.The transportation costs were $4,000,installation costs were $1,000 and taxes on the purchase price were $700.Testing runs of the new machine cost $5,000.What is the cost of the machine?

Question

Quizplus · Accepted Answer

The cost of the machine includes the purchase price plus all additional costs incurred in acquiring the machine.

Cost of machine = Purchase price + Transportation costs + Installation costs + Taxes + Testing runs cost
Cost of machine = $70,000 + $4,000 + $1,000 + $700 + $5,000 
Cost of machine = $80,700

Therefore, the cost of the machine is $80,700.

A Machine Is Purchased for $70,000