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Anchor Company purchased a manufacturing machine with a list price of $97,000 and received a 2% cash discount on the purchase. The machine was delivered under terms Free On Board shipping point, and freight costs amounted to $4,600. Anchor paid $6.600 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $8,600 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be: Multiple Choice $106,260 $99,660 $95,060 $114,860

Anchor Company purchased a manufacturing machine with a list price of $97,000 and received a 2% cash discount on the purchase. The machine was delivered under terms Free On Board shipping point, and freight costs amounted to $4,600. Anchor paid $6.600 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $8,600 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be: Multiple Choice $106,260 $99,660 $95,060 $114,860

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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Anchor Company purchased a manufacturing machine with a list price of $97,000 and received a 2% cash discount on the purchase. The machine was delivered under terms Free On Board shipping point, and freight costs amounted to $4,600. Anchor paid $6.600 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $8,600 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be: Multiple Choice $106.260 $99,660. $95,060 $114,860 1 Drau 45 of 50 *** ** Next >
Transcribed Image Text:Anchor Company purchased a manufacturing machine with a list price of $97,000 and received a 2% cash discount on the purchase. The machine was delivered under terms Free On Board shipping point, and freight costs amounted to $4,600. Anchor paid $6.600 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $8,600 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be: Multiple Choice $106.260 $99,660. $95,060 $114,860 1 Drau 45 of 50 *** ** Next >
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