Acompany purchased new equipment for $42,000. the company paid cash for the equipment. other costs associated with the equipment were: transportation costs, $2,300; sales tax paid $3,200; and installation cost, $2,000. the cost recorded for the equipment was:
a $12,000.00
b $13,530.00
c $12,600.00
d $13,110.00

Total cost for the equipment=$49.500

Explanation:

To get the total cost recorded for the equipment, we will include the cost of the equipment and additional associated costs. The expression is;

Total cost for the equipment=Equipment purchase price+transportation costs+sales tax paid+installation costs

where;

Equipment purchase price=42,000

Transportation costs=2,300

Sales tax paid=3,200

Installation costs=2,000

replacing;

Total cost for the equipment=(42,000+2,300+3.200+2.000)

Total cost for the equipment=$49,500

answer; tech (a) is correct;

answer; at prices that violate government price regulations;