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Whole Grain Bakery purchases an industrial bread machine for $25,000. In addition to the purchase price,...

Whole Grain Bakery purchases an industrial bread machine for $25,000. In addition to the purchase price, the company makes the following expenditures: freight, $1,500; installation, $3,000; testing, $1,000; and property tax on the machine for the first year, $500.

What is the initial cost of the bread machine?
  

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Answer #1

Initial cost

= Purchase price + Freight + installation + testing

= 25000+1500+3000+1000

= 30,500
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