A construction company paid $80,000 cash for equipment used in the business. At the time of purchase, the equipment had a list price of $90,000. When the balance sheet was prepared, the value of the equipment was $83,000. At what amount should the equipment be recorded in the records of the company?

Question

Quizplus · Accepted Answer

The equipment should be recorded at its historical cost, which is the amount paid for it, $80,000.

A Construction Company Paid $80,000 Cash for Equipment Used in the Business