CONCEPTS IN FED.TAX.,2020-W/ACCESS
CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN: 9780357110362
Author: Murphy
Publisher: CENGAGE L
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Martinez Company purchases new manufacturing equipment for $75,000. Additional
costs include:
⚫ Sales tax of $6,000
⚫
Installation costs of $2,500
⚫ Employee training costs of $1,200
.
Annual maintenance contract of $800
⚫ Initial testing and calibration of $700
What should Martinez Company record as the cost of the new equipment?
a) $82,500
b) $84,200
c) $85,000
d) $85,800
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Transcribed Image Text:Martinez Company purchases new manufacturing equipment for $75,000. Additional costs include: ⚫ Sales tax of $6,000 ⚫ Installation costs of $2,500 ⚫ Employee training costs of $1,200 . Annual maintenance contract of $800 ⚫ Initial testing and calibration of $700 What should Martinez Company record as the cost of the new equipment? a) $82,500 b) $84,200 c) $85,000 d) $85,800
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