Kegler Bowling buys scorekeeping equipment with an invoice cost of $175,000. The electrical work required for the installation costs $18,200. Additional costs are $3,640 for delivery and $12,600 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,700. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Included or Excluded Costs Amount Acco Invoice cost 2$ 175,000 Electrical work required for installation 18,200 Delivery costs 3,640 Sales tax 12,600 Repair costs 1,700 Total recorded cost

Kegler Bowling buys scorekeeping equipment with an invoice cost of $175,000. The electrical work required for the installation costs $18,200. Additional costs are $3,640 for delivery and $12,600 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,700. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Included or Excluded Costs Amount Acco Invoice cost 2$ 175,000 Electrical work required for installation 18,200 Delivery costs 3,640 Sales tax 12,600 Repair costs 1,700 Total recorded cost

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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