Identify and compute the cost of the machine. Explain your
reasoning
Homework Answers
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| Cost of the machine | |
| List Price | 80000 |
| Less: Discount | -8000 |
| Tax | 6000 |
| Freight | 1000 |
| New Parts to replace damaged parts | 2000 |
| Installation | 1500 |
| Repairs of vandalism during installation | 1200 |
| Assembly | 2200 |
| Special foundation | 3800 |
| Testing for use | 1500 |
| Total | 91200 |
Explanation:The original cost of an asset takes into consideration all of the items that can be attributed to its purchase and to putting the asset to use including installation, testing, foundation.
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Identify and compute the cost of the machine. Explain your
reasoning
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