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15 March, 04:51

Worthington Chandler Company purchased equipment for $40,000. Sales tax on the purchase was $2,400. Other costs incurred were freight charges of $600, repairs of $350 for damage during installation, and installation costs of $675. What is the cost of the equipment?

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  1. 15 March, 05:03
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    cost of the equipment = $43,350

    Explanation:

    Given that,

    Equipment purchased = $40,000

    Sales tax on purchase = $2,400

    Freight charges = $600

    Installation cost = $350

    Total cost of the equipment:

    = Equipment purchased + Sales tax on purchase + Freight charges + Installation cost

    = $40,000 + $2,400 + $600 + $350

    = $43,350

    so,

    cost of the equipment = $43,350
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