HP Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $21,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $11,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? Select one: a. $123,600 b. $129,360 c. $131,760 d. The answer does not exist e. $125,360

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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HP Company purchased equipment on January 1 at a list
price of $127,000, with credit terms 2/10, n/30. Payment
was made within the discount period and Yocum was
given a $21,400 cash discount. Yocum paid $6,000 sales
tax on the equipment, and paid installation charges of
$11,760. Prior to installation, Yocum paid $4,000 to pour
a concrete slab on which to place the equipment. What is
the total cost of the new equipment?
Select one:
a. $123,600
b. $129,360
c. $131,760
d. The answer does not exist
e. $125,360
Transcribed Image Text:HP Company purchased equipment on January 1 at a list price of $127,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $21,400 cash discount. Yocum paid $6,000 sales tax on the equipment, and paid installation charges of $11,760. Prior to installation, Yocum paid $4,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment? Select one: a. $123,600 b. $129,360 c. $131,760 d. The answer does not exist e. $125,360
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