Nelson Company purchased equipment and incurred the following costs:1 Cash price = $55,0002 Sales taxes = $4,4003 Insurance during transit = $4004 Site preparation, installation, and testing= $2,300What amount should be used as the cost basis of the equipment?

Principles of Accounting Volume 1
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ISBN:9781947172685
Author:OpenStax
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Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5MC: Ngo Company purchased a truck for $54,000. Sales tax amounted to $5,400; shipping costs amounted to...
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Nelson Company purchased equipment and incurred the following costs:
1 Cash price = $55,000
2 Sales taxes = $4,400
3 Insurance during transit = $400
4 Site preparation, installation, and testing= $2,300
What amount should be used as the cost basis of the equipment?

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