Bahama Catering purchased a commercial dishwasher by paying cash of $5,000.The dishwasher's fair value on the date of the purchase was $5,600.The company incurred $400 in transportation costs,$300 installation fees,and paid a $200 fine for illegal parking while the dishwasher was being delivered.For what amount will Bahama record the dishwasher?

Question

Quizplus · Accepted Answer

The cost of the dishwasher includes the invoice price plus any other costs necessary to get the asset ready for use. In this case, Bahama Catering incurred transportation costs ($400), installation fees ($300), and a fine for illegal parking ($200) while the dishwasher was being delivered. Therefore, the total cost of the dishwasher would be $5,000 + $400 + $300 + $200 = $5,900.

Bahama Catering Purchased a Commercial Dishwasher by Paying Cash of $5,000.The