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24 January, 19:20

Kegler Bowling buys scorekeeping equipment with an invoice cost of $185,000. The electrical work required for the installation costs $19,425. Additional costs are $3,885 for delivery and $13,330 for sales tax. During the installation, the equipment was damaged and the cost of repair was $1,795.

Required:

a. What is the total recorded cost of the scorekeeping equipment?

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Answers (1)
  1. 24 January, 19:39
    0
    The total recorded cost of score-keeping equipment is $$221,610

    Explanation:

    The cost of score-keeping equipment comprises of the invoice cost of the equipment, installation costs, delivery and sales tax incurred on the purchase since the sales tax is not recoverable from relevant tax authority

    The cost of equipment is computed thus:

    Invoice price $185,000

    Installation cost $19,425

    Delivery costs $3,885

    Sales tax $13,300

    Total cost $221,610

    The repair cost is not included as it is expected to expensed as incurred by recognizing it in income statement
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Home » Business » Kegler Bowling buys scorekeeping equipment with an invoice cost of $185,000. The electrical work required for the installation costs $19,425. Additional costs are $3,885 for delivery and $13,330 for sales tax.
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