Coulter Company purchases a piece of equipment on February 1, 2020 for $80.000. In addition to the purchase price, the company makes the following expenditures: freight. $3.400; installation. $1.650; testing prior to use, $800: property taxes on the equipment for the first year $1.200: sale tax on the purchase $2.000, and prepayment of the first year of insurance on the equipment. $1,400. What amount should Coulter Company debit the equipment account for on the date of purchase? $90,450 O$87.050 $87.850 $89,050 None of the above.

Coulter Company purchases a piece of equipment on February 1, 2020 for $80.000. In addition to the purchase price, the company makes the following expenditures: freight. $3.400; installation. $1.650; testing prior to use, $800: property taxes on the equipment for the first year $1.200: sale tax on the purchase $2.000, and prepayment of the first year of insurance on the equipment. $1,400. What amount should Coulter Company debit the equipment account for on the date of purchase? $90,450 O$87.050 $87.850 $89,050 None of the above.

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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