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Anchor Company purchased a manufacturing machine with a list price of $87,000 and received a 2% cash discount on the purchase. The machine was delivered under terms Free On Board shipping point, and freight costs amounted to $2,600. Anchor paid $3,600 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $4,600 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be:

Respuesta :

Tundexi

Answer:

$91,460

Explanation:

The amount of cost recorded in the asset account would be:

= List price - (Discount) + Freight + Installation and testing

= $87,000 - $87,000*2% + $2,600 + $3,600

= $87,000 - $1,740 + $2,600 + $3,600

= $91,460

Note: Insurance cots will not be included in cost of machine

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