Ukela Corp

Multiple Choice

Ukela Corp. purchased a piece of equipment on May 15 for $27,000. It cost $400 to ship the equipment to the company's facilities and another $1,000 to install the equipment. After the equipment was installed the company had to pay an additional $1,500 for increased insurance. The capitalized cost of the equipment was

A) $29,900.
B) $29,500.
C) $28,400.
D) $27,400.