Concord Corporation purchased equipment for $29800. Sales tax on the purchase was $1490. Other costs incurred were freight charges of $450, repairs of $620 for damage during installation, and installation costs of $490. What is the cost of the equipment?

 

$32850.

$29800.

$31290.

$32230.

Answer is D) $32230.

Step-by-step explanation

All those costs that are ancillary and mandatory for getting the equipment ready to use are added to the cost of equipment.

In the question given above, Sales tax,freight charges and installation costs are mandatory for getting the equipment ready to use in normal circumstances. But the expense incurred on the repairs for damage during installation is not a normal thing and it doesn't always happen. So it should not be added to the cost of the equipment.

please use this google drive link to download the answer file.

https://drive.google.com/file/d/1KF-VWKu64LBIB9rUUpc6zsjwrLqplTE0/view?usp=sharing

note: if you have any trouble in viewing/downloading the answer from the given link, please use this below guide to understand the whole process.

https://helpinhomework.org/blog/how-to-obtain-answer-through-google-drive-link