On january 1 2012 pearl inc purchased a piece of equipment


Acquisition Cost

On January 1, 2012, Pearl Inc. purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase:

Terms of the purchase were 2/10, net 30. Pearl paid for the purchase on January 8.

Freight costs of $1,000 were incurred.

A state agency required that a pollution control device be installed on the equipment at a cost of $2,500.

During installation, the equipment was damaged and repair costs of $4,000 were incurred.

Architect's fees of $7,600 were paid to redesign the work space to accommodate the new equipment.

Pearl purchased liability insurance to cover possible damage to the asset. The three-year policy cost $8,000.

Pearl financed the purchase with a bank loan. Interest of $3,000 was paid on the loan during 2012.

Required:

Determine the acquisition cost of the equipment.

$

Request for Solution File

Ask an Expert for Answer!!
Financial Accounting: On january 1 2012 pearl inc purchased a piece of equipment
Reference No:- TGS01006319

Expected delivery within 24 Hours