On January 1, 2016, Humansville Company Purchased a Piece of Equipment

question 155

Essay

On January 1, 2016, Humansville Company purchased a piece of equipment with a list price of $80,000.The following amounts were related to the equipment purchase:
• Terms of the purchase were 2/10, net 30.Humansville paid for the purchase on January 8.
• Freight costs of $1,250 were incurred.
• A state agency required that a pollution control device be installed on the equipment at a cost of $3,300.
• During installation, the equipment was damaged and repair costs of $4,200 were incurred.
• Architect's fees of $6,100 were paid to redesign the work space to accommodate the new equipment.
• Humansville purchased liability insurance to cover possible damage to the asset.The three-year policy cost $8,700.
• Humansville financed the purchase with a bank loan.Interest of $4,600 was paid on the loan during 2016.
Required:
Determine the acquisition cost of the equipment.

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Definitions:

Negative Context

A situation or environment that creates a pessimistic or adverse impression, affecting perception or outcomes.

Favourable Context

Circumstances or settings that are advantageous or beneficial for a particular action or decision.

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A common or regularly occurring request, often for something that is needed regularly or on a recurring basis.

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