Bonita Industries purchased equipment for $30600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $700 for damage during installation, and installation costs of $410. What is the cost of the equipment? $30600. $33520. $32820. $32050.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bonita Industries purchased equipment for $30600. Sales tax on the purchase was $1450. Other costs incurred were freight charges of $360, repairs of $700 for damage during installation, and installation costs of $410. What is the cost of the equipment?

$30600.
$33520.
$32820.
$32050.
Expert Solution
Step 1: Definition

Property, Plant, and Equipment:

Property, Plant, and Equipment refers to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

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