Problem
On January 1, Year 3, Garnet Corporation purchased equipment with a list price of $85,000. The following amounts were related to this purchase
Terms of the credit purchase were 2/10, n/45. Garnet paid for the equipment on January 7.
Freight charges to have the equipment delivered to Garnet's production facility were $2,000.
During installation, the equipment was damaged due to negligence. Repairs cost $5,100.
Before the equipment could be installed, upgrades to the existing electrical system were necessary; these upgrades cost $6,700.
Garnet purchased insurance to cover possible damage to the equipment during use; the three-year policy cost $3,600.
Garnet financed part of the cost of the equipment with a bank loan. Interest on the loan during Year 3 amounted to $1,800.
What amount should Garnet record as the cost of the equipment?