Equipment Was Purchased for $85000 on January 2 2022 $$85500

Multiple Choice

Equipment was purchased for $85000 on January 2 2022.Freight charges amounted to $3500 and there was a cost of $10000 for building a foundation and installing the equipment.The company purchased a special insurance policy for the equipment with a monthly premium of $500.Use the following tabular analysis to record these expenditures assuming that all payments were made in cash.

A) Increase Equipment $98500 increase Insurance Expense $500 and decrease Cash $99000.
B) Increase Equipment $95000 increase Freight Expense $3500 increase Insurance Expense $500 and decrease Cash $99000.
C) Increase Equipment $85000 and decrease Cash $85000.
D) Increase Equipment $85000 decrease Accumulated Depreciation $13500 increase Insurance Expense $500 and decrease Cash $$85500.