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Question 2. Using terms of 2/10 and n/30, Granite Company spent $133,000 on a machine. The equipment was delivered FOB the shipment location, and the freight charged $3,300. Special installation and electrical connections for the machine are necessary and will cost $11,300. Damages of $2,800 were incurred during equipment installation. Assuming Granite paid during the discount period, calculate the cost reported for this machine. A. $163,000. B. $154,140. C. $150,340. D. $154,440. E. $144,940.

Question 2. Using terms of 2/10 and n/30, Granite Company spent $133,000 on a machine. The equipment was delivered FOB the shipment location, and the freight charged $3,300. Special installation and electrical connections for the machine are necessary and will cost $11,300. Damages of $2,800 were incurred during equipment installation. Assuming Granite paid during the discount period, calculate the cost reported for this machine. A. $163,000. B. $154,140. C. $150,340. D. $154,440. E. $144,940.

College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 5CE: Prepare journal entries for the following transactions: a. A machine with a cost of 10,000 and...
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Question 2. Using terms of 2/10 and n/30, Granite Company spent $133,000 on a machine. The equipment was delivered FOB the shipment location, and the freight charged $3,300. Special installation and electrical connections for the machine are necessary and will cost $11,300. Damages of $2,800 were incurred during equipment installation. Assuming Granite paid during the discount period, calculate the cost reported for this machine.

A. $163,000.

B. $154,140.

C. $150,340.

D. $154,440.

E. $144,940.

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