My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 11 -- PROPERTY, EQUIPMENT, and OTHER ASSETS now.  Problem 4 asks me to Using the following information, determine the proper amount to be capitalized in the asset account Equipment. Invoice price of equipment                              $8,000 Cash discount allowed: 2% of invoice            $160 Freight-in paid                                                   $300 Speeding ticket given to our truck driver while the driver was delivering equipment                                                                                                  $25 Installation costs                                                                                        $150 Sales tax on purchase                                                                               $308 Repair of damages due to equipment being dropped off truck           $200

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 11 -- PROPERTY, EQUIPMENT, and OTHER ASSETS now. 

Problem 4 asks me to Using the following information, determine the proper amount to be capitalized in the asset account Equipment.

Invoice price of equipment                              $8,000

Cash discount allowed: 2% of invoice            $160

Freight-in paid                                                   $300

Speeding ticket given to our truck driver while the driver was delivering equipment                                                                                                  $25

Installation costs                                                                                        $150

Sales tax on purchase                                                                               $308

Repair of damages due to equipment being dropped off truck           $200

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