Rains Company Purchased Equipment on January 1 at a List

question 119

Multiple Choice

Rains Company purchased equipment on January 1 at a list price of $125,000, with credit terms 2/10, n/30.Payment was made within the discount period.Rains paid $6,250 sales tax on the equipment and paid installation charges of $2,200.Prior to installation, Rains paid $5,000 to pour a concrete slab on which to place the equipment.What is the total cost of the new equipment?

• A)$131,250
• B)$135,950
• C)$138,450
• D)$126,250

---

Definitions:

Section 504

A part of the Rehabilitation Act of 1973 that prohibits discrimination against individuals with disabilities in programs that receive federal financial assistance.

Ethical Decision Making

The process of choosing actions that are consistent with one’s principles and values in a moral context.

Employment

The condition of working for pay in a job, profession, or business, whether part-time or full-time.

Valid

Having sound basis in logic or fact; accurately representing the intended meaning or the truth of the situation.