Nelson Company purchased equipment and incurred the following costs: Cash price = $55,000 Sales taxes = $4,400 Insurance during transit = $400 Site preparation, installation, and testing= $2,300What amount should be used as the cost basis of the equipment?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Nelson Company purchased equipment and incurred the following costs:

  • Cash price = $55,000
  • Sales taxes = $4,400
  • Insurance during transit = $400
  • Site preparation, installation, and testing= $2,300
    What amount should be used as the cost basis of the equipment?
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