The Roger's Company incurred the following costs in the acquisition of a plant asset:
What is the cost of the plant asset?

Question

The Roger's Company incurred the following costs in the acquisition of a plant asset:  
What is the cost of the plant asset?

Quizplus · Accepted Answer

The total cost incurred in the acquisition of a plant asset is the sum of all costs associated with acquiring it. In this case, the costs are: 
- Purchase price: $3,500 
- Sales tax: $210 
- Freight charges: $140 
- Installation costs: $50 
So the total cost is $3,500 + $210 + $140 + $50 = $3,900, which is option B.

The Roger's Company Incurred the Following Costs in the Acquisition