Anchor Company Purchased a Manufacturing Machine with a List Price

question 89

Multiple Choice

Anchor Company purchased a manufacturing machine with a list price of $80,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and freight costs amounted to $1,200. Anchor paid $1,500 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $1,800 for the first year of operations. Based on this information, the amount of cost recorded in the asset account would be:

• A)$81,100.
• B)$79,600.
• C)$82,900.
• D)$78,400.