Multiple Choice
Anchor Company purchased a manufacturing machine with a list price of $100,000 and received a 2% cash discount on the purchase. The machine was delivered under terms free on board (FOB) shipping point, and transportation costs amounted to $5,200. Anchor paid $7,500 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $9,800 for the first year of operations. What is the cost of the machine?
A) $98,000
B) $103,200
C) $120,500
D) $110,700
Correct Answer:
Verified
Correct Answer:
Verified
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