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Ballyhigh Company purchased equipment for $20,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $350 for damage during installation, and installation costs of $450. What is the capitalizable cost of the equipment? A) $21,500 B) $21,850 C) $22,350 D) $22,700

Ballyhigh Company purchased equipment for $20,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $350 for damage during installation, and installation costs of $450. What is the capitalizable cost of the equipment? A) $21,500 B) $21,850 C) $22,350 D) $22,700

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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Ballyhigh Company purchased equipment for $20,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $350 for damage during installation, and installation costs of $450. What is the capitalizable cost of the equipment? A) $21,500 B) $21,850 C) $22,350 D) $22,700
Transcribed Image Text:Ballyhigh Company purchased equipment for $20,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $350 for damage during installation, and installation costs of $450. What is the capitalizable cost of the equipment? A) $21,500 B) $21,850 C) $22,350 D) $22,700
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