Ballyhigh Company purchased equipment for $20,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $350 for damage during installation, and installation costs of $450. What is the capitalizable cost of the equipment?
A. $21,500
B. $21,850
C. $22,350
D. $22,700
Answer:C
Ballyhigh Company purchased equipment for $20,000. Sales tax on the purchase was $1,500. Other costs incurred were freight charges of $400, repairs of $350 for damage during installation, and installation costs of $450. What is the capitalizable cost of the equipment?
A. $21,500 B. $21,850 C. $22,350 D. $22,700