Problem 1 Lane Enterprises Ltd. purchased some new equipment with a list price of $ 75,000....

Problem 1 Lane Enterprises Ltd. purchased some new equipment with a list price of $ 75,000. The firm received a 5% discount for paying cash. Sales tax on the purchase was $ 4,500. The company also paid delivery charges of $ 820 and labor costs of $ 1,280 for installing the new equipment. Two additional workers were hired to operate the new machinery at an annual salary of $ 21,000 each. What amount should be recorded to the Equipment account for this purchase?

Expert Solution

List price	75000
Less: Discount	-3750	=75000*5%
Sales tax	4500
Delivery charges	820
Labor costs	1280
Equipment cost	77850

ekkarill92 answered 2 years ago

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