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7. Provo Co. buys a piece of equipment with a selling price of $9,000. The dealer grants the company a reduction of 15% on the list price. The company made the following additional expenditures: sales taxes that are refundable, $1,350, insurance on the equipment for one year, $250, and a delivery charge, $300, paid by Provo. At what cost should Provo record the equipment on its books? A.) $7,950 B. $8,797.5 C. $8,200 D. $7,650 E. None of the other amounts

7. Provo Co. buys a piece of equipment with a selling price of $9,000. The dealer grants the company a reduction of 15% on the list price. The company made the following additional expenditures: sales taxes that are refundable, $1,350, insurance on the equipment for one year, $250, and a delivery charge, $300, paid by Provo. At what cost should Provo record the equipment on its books? A.) $7,950 B. $8,797.5 C. $8,200 D. $7,650 E. None of the other amounts

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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7. Provo Co. buys a piece of equipment with a selling price of $9,000. The dealer grants the company a reduction of 15% on the list price. The company made the following additional expenditures: sales taxes that are refundable, $1,350, insurance on the equipment for one year, $250, and a delivery charge, $300, paid by Provo. At what cost should Provo record the equipment on its books? A.) $7,950 B. $8,797.5 C. $8,200 D. $7,650 E. None of the other amounts
Transcribed Image Text:7. Provo Co. buys a piece of equipment with a selling price of $9,000. The dealer grants the company a reduction of 15% on the list price. The company made the following additional expenditures: sales taxes that are refundable, $1,350, insurance on the equipment for one year, $250, and a delivery charge, $300, paid by Provo. At what cost should Provo record the equipment on its books? A.) $7,950 B. $8,797.5 C. $8,200 D. $7,650 E. None of the other amounts
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