Problemgrab manufacturing co purchased a ten-ton draw press, Ask an Expert

Accounting

Problem:

Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $171,000 with terms of 1/15, n/45. Payment was made within the discount period. Shipping costs were $4,800, which included $280 for insurance in transit. Installation costs totaled $11,200, which included $4,800 for taking out a section of a wall and rebuilding it because the press was too large for the doorway.

Required:

The capitalized cost of the ten-ton draw press is:

a) $169,290.
b) $187,790.
c) $185,290.
d) $180,490.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164691

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