Vans Catering purchased a commercial dishwasher by paying cash of $3,000. The dishwasher's fair value on the date of the purchase was $4,600. The company incurred $700 in transportation costs, $600 installation fees, and paid a $200 fine for illegal parking while the dishwasher was being delivered. For what amount will Vans record the dishwasher

The answer is $ 4,300

Explanation:

Solution

Given that:

Vans Catering purchased a commercial dishwasher by paying cash of = 3,000.

The fair value of dishwasher = $ 4,600

The company incurred = $700

Installation fees = $600

Paid a fine for illegal parking = $ 200

Now,

Cost of asset = All costs necessary up to asset is put to use

= $ 3000 + $ 700 + $ 600

= $ 4,300