Wiley Company purchased new equipment for $60,000.Wiley paid cash for the equipment.Other costs associated with the equipment were: transportation costs,$1,000;sales tax paid $3,000;and installation cost,$2,500.The cost recorded for the equipment was:

Question

Quizplus · Accepted Answer

The cost recorded for the equipment would include the purchase price of $60,000 plus the additional costs of transportation ($1,000), sales tax ($3,000), and installation ($2,500), which total $6,500. Therefore, the cost recorded for the equipment would be $60,000 + $6,500 = $66,500.

Wiley Company Purchased New Equipment for $60,000