Springfield Company Purchases New Factory Equipment

Multiple Choice

Springfield Company purchases new factory equipment.Per the terms of the contract, Springfield must pay the freight charges, will receive a manufacturer's discount off the invoice price on the equipment, and will have some setup expenses to pay. As a result, the acquisition cost of equipment recorded on Springfield's books will be the sum of the invoice price

A) less any discounts, plus transportation costs, installation charges, and any other costs incurred before the equipment is ready for use.
B) less any discounts and transportation costs, plus installation charges and any other costs incurred after the equipment is ready for use.
C) plus transportation costs, installation charges, and any other costs incurred before the equipment is ready for use.
D) less transportation costs, installation charges, and any other costs incurred after the equipment is ready for use.
E) less any discounts and installation charges, plus transportation charges and any other costs incurred after the equipment is ready for use.