A Construction Company Purchased a Piece of Equipment with a Price

Multiple Choice

A construction company purchased a piece of equipment with a price of $100,000 on March 1 of the current year. The amounts are related to the equipment purchase. Match the items and explain how each item should be accounted for. (Choices may be used more than once.)
-The cash purchase was made on March 8 with terms of 2/10, net 30.

A) This item should be included as part of the cost of the equipment.
B) This item should be considered a revenue expenditure.