Need Answer of this General Accounting Question A company purchased for cash a machine with a list price of$90,000. The machine was shipped FOB shipping point at acost of $5,000. Installation and test runs of the machine cost$3,000. The recorded acquisition cost of the machine iswhich amount?a. $98,000b. $128,000c. $90,000d. $93,000

Step 1: Definition of Historical CostHistorical cost refers to the actual amount spent to acquire an…

Answered: A company purchased for cash a machine…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter18: Accounting For Long-term Assets

Section: Chapter Questions

Problem 5CE: Prepare journal entries for the following transactions: a. A machine with a cost of 10,000 and...

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A company purchased for cash a machine with a list price of $90,000. The machine was shipped FOB shipping point at a cost of $5,000. Installation and test runs of the machine cost $3,000. The recorded acquisition cost of the machine is which amount? a. $98,000 b. $128,000 c. $90,000 d. $93,000