Yocum Company Purchased Equipment on January 1 at a List

question 205

Multiple Choice

Yocum Company purchased equipment on January 1 at a list price of $50,000, with credit terms 2/10, n/30. Payment was made within the discount period and Yocum was given a $1,000 cash discount. Yocum paid $2,500 sales tax on the equipment, and paid installation charges of $880. Prior to installation, Yocum paid $2,000 to pour a concrete slab on which to place the equipment. What is the total cost of the new equipment?

• A) $52,380
• B) $54,380
• C) $55,380
• D) $50,500

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