On March 1, Bunker Hill Company purchased a new stamping machine with a list price of $78,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $2,100; sales tax paid, $4,720; installation costs, $1,400; routine maintenance during the first month of operation, $2,000. The cost recorded for the machine was: a. $80,920. b. $74,100. c. $82,320. d. $84,320.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
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ISBN:9780357110362
Author:Murphy
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Chapter9: Acquisitions Of Property
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On March 1, Bunker Hill Company purchased a new stamping machine with a list price of $78,000. Please give correct answer for this accounting question

On March 1, Bunker Hill Company purchased a new stamping machine with a list price of
$78,000. The company paid cash for the machine; therefore, it was allowed a 5% discount.
Other costs associated with the machine were: transportation costs, $2,100; sales tax paid,
$4,720; installation costs, $1,400; routine maintenance during the first month of operation,
$2,000. The cost recorded for the machine was:
a. $80,920.
b. $74,100.
c. $82,320.
d. $84,320.
Transcribed Image Text:On March 1, Bunker Hill Company purchased a new stamping machine with a list price of $78,000. The company paid cash for the machine; therefore, it was allowed a 5% discount. Other costs associated with the machine were: transportation costs, $2,100; sales tax paid, $4,720; installation costs, $1,400; routine maintenance during the first month of operation, $2,000. The cost recorded for the machine was: a. $80,920. b. $74,100. c. $82,320. d. $84,320.
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