For what amount will LAR record the range?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
LAR Corp. purchased a commercial range by paying cash of $13,500. The range's fair value on the date of the purchase was $14,000. The company incurred $600 in transportation costs, $400 installation fees, and paid $500 annual insurance on the equipment.
For what amount will LAR record the range?
Select one:
a. $14,500
b. $15,500
c. $13,500
d. $15,000
e. $14,000
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