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Anchor Company purchased a manufacturing machine with a list price of $92,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $3,600. Anchor paid $5,100 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $6,600 for the first year of operations. What is the cost of the machine?

Respuesta :

facundobuzzetti

Answer:

Total cost= $98,860

Explanation:

Giving the following information:

Anchor Company purchased a manufacturing machine with a list price of $92,000 and received a 2% cash discount on the purchase.

Transportation costs amounted to $3,600. Anchor paid $5,100 to have the machine installed and tested.

Total cost= 92,000*0.98 + 3,600 + 5,100= $98,860