A Company Purchased Equipment on July 3 of the Current

Essay

A company purchased equipment on July 3 of the current year and placed it in service on August 1.The following costs were incurred in acquiring the equipment:
Determine the amount to be recorded as cost for the equipment.
$$\begin{array} { | l | r | } \hline \text { Purchase (invoice) price } & \$ 215,600 \\\hline \text { Transportation } & 1,400 \\\hline \text { Insurance during shipping } & 200 \\\hline \text { One-year fire insurarice begiruing Aupust I of the curent year } & 1,200 \\\hline \text { Installation cost } & 4,500 \\\hline \text { Raw materials and direct labor used to test the equipment } & 1,500 \\\hline\end{array}$$