Chapter 8, Problem 1QS

To determine

Given info,
Cost of equipment is $190,000.
Installation cost is $20,000.
Additional cost is $4000.
Sales tax is 13,700.
Cost of repairing is $1,850.

Explanation of Solution

Calculation of The total recorded cost of the automatic scorekeeping equipment.

$\begin{array}{c}\text{Total}\text{recorded}\text{cost}=\text{Cost}\text{of}\text{equipment}+\text{Installation}\text{cost}+\text{Sales}\text{tax}\\ =\$190,000+\$20,000+\$4,000+\$13,700\\ =\$227,700\end{array}$

The cost of repairing will not be added as it is not the expense which has been incurred in putting the asset to use.

The total recorded cost of the automatic scorekeeping equipment is $227,700.