Mad Hatter Enterprises purchased new equipment for $365,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: $$\begin{array} { l r }
\text { State sales tax } & 29,200 \
\text { Freight costs } & 5,600 \
\text { Insurance while in transit } & 800 \
\text { Insurance after equipment placed in service } & 1,200 \
\text { Installation costs } & 2,000 \
\text { Insurance for the first year of operations } & 2,400 \
\text { Testing } & 700
\end{array}$$ Required:
Determine the capitalized cost of the equipment.

Question

Mad Hatter Enterprises purchased new equipment for $365,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: $$\begin{array} { l r } 
\text { State sales tax } & 29,200 \
\text { Freight costs } & 5,600 \
\text { Insurance while in transit } & 800 \
\text { Insurance after equipment placed in service } & 1,200 \
\text { Installation costs } & 2,000 \
\text { Insurance for the first year of operations } & 2,400 \
\text { Testing } & 700
\end{array}$$ Required:
Determine the capitalized cost of the equipment.

Quizplus · Accepted Answer

The Answer of Mad Hatter Enterprises purchased new equipment for $365,000, terms f.o.b. shipping point. Other costs connected with the purchase were as follows: $$\begin{array} { l r } 
\text { State sales tax } & 29,200 \
\text { Freight costs } & 5,600 \
\text { Insurance while in transit } & 800 \
\text { Insurance after equipment placed in service } & 1,200 \
\text { Installation costs } & 2,000 \
\text { Insurance for the first year of operations } & 2,400 \
\text { Testing } & 700
\end{array}$$ Required:
Determine the capitalized cost of the equipment.

Mad Hatter Enterprises Purchased New Equipment for $365,000, Terms F