Kegler Bowling buys scorekeeping equipment with an invoice cost of $180,000. The electrical work required for the installation costs $18,000. Additional costs are $3,600 for delivery and $12,900 for sales tax, During the installation, the equipment was damaged and the cost of repair was $1,760. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ 180,000 18,000 3,600 12,900 1,760 Included or Excluded Account

Kegler Bowling buys scorekeeping equipment with an invoice cost of $180,000. The electrical work required for the installation costs $18,000. Additional costs are $3,600 for delivery and $12,900 for sales tax, During the installation, the equipment was damaged and the cost of repair was $1,760. Required: Indicate whether each cost should be included in the cost of the equipment or excluded and expensed as incurred. Costs Invoice cost Electrical work required for installation Delivery costs Sales tax Repair costs Total recorded cost Amount $ 180,000 18,000 3,600 12,900 1,760 Included or Excluded Account

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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