Question

On march 1, wright company purchased new equipment for $50,000 by paying cash. other costs associated with the equipment were: transportation costs, $1,000; sales tax paid $4,000; and installation cost, $2,500. at what amount will the equipment be recorded on a balance sheet

Answer 1

$57500 will the real amount of M/c (machine)
machine cost :- 50000
transportation cost :- 1000
sales tax :- 4000
installation cost. :- + 2500
total amt. 57500