Rizio Company purchases a machine for $14,800, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and tookthe $296 discount. Transportation costs of $334 were paid by Rizio. The machine required mounting and power connections costing$1,023. Another $482 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, themachine was damaged and $350 worth of repairs were made.Complete the below table to calculate the cost recorded for this machine.Amount Included in Cost of Equipment:Invoice price of machineNet purchase priceTotal cost to be recorded

Answer : Cost recorded for the machine : Amount included in the cost of the equipment Invoice…

Answered: ransportation costs of $334 were paid 2…

ransportation costs of $334 were paid 2 is paid to assemble the machine, and ed and $350 worth of repairs were ma table to calculate the cost recorded fo ost of Equipment:

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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Question

Rizio Company purchases a machine for $14,800, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took
the $296 discount. Transportation costs of $334 were paid by Rizio. The machine required mounting and power connections costing
$1,023. Another $482 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the
machine was damaged and $350 worth of repairs were made.
Complete the below table to calculate the cost recorded for this machine.
Amount Included in Cost of Equipment:
Invoice price of machine
Net purchase price
Total cost to be recorded

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