Principles of Accounting Volume 1
19th Edition
ISBN: 9781947172685
Author: OpenStax
Publisher: OpenStax College
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Textbook Question
Chapter 11, Problem 5EA
Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following transactions:
• Paid shipping of $1,000
• Paid installation fees of $2,000
• Pays annual maintenance cost of $200
• Received a 5% discount on $25,000 sales price
Determine the acquisition cost of the equipment.
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