On March 1,Chapine Company purchased a new stamping machine for $5,000.Chapine paid cash for the machine.Other costs associated with the machine were: transportation costs,$300; sales tax paid,$200; and installation cost,$100.What cost was recorded for the machine?
A)$5,000
B)$5,200
C)$5,500
D)$5,600

Question

Quizplus · Accepted Answer

The cost recorded for the machine would be the purchase price ($5,000) plus any additional costs necessary to get the machine up and running. In this case, that includes the transportation, sales tax, and installation costs, for a total of $5,600 (D).

On March 1,Chapine Company Purchased a New Stamping Machine for $5,000.Chapine