Miscellaneous costs associated with the purchase of new equipment? include:
Insurance costs before the equipment is ready for use $3,000
Maintenance costs before the equipment is ready for use 700
Insurance costs after the equipment is placed into service 1,400
Cost of trial run 800
Training costs for employees to learn how to use equipment 400
What is the amount assigned to the new? equipment?
A. $4,200.
B. $4,500.
C. $4,900.
D. $6,300.

Answers

Answer 1

Answer:

C. $4,900.

Explanation:

Determining the amount assigned to the new equipment

Details                                                                                                    Amount

Insurance costs before the equipment is ready for use                     $3,000

Add: Maintenance costs before the equipment is ready for use       $700

Add: Cost of trial run                                                                              $800

Add: Training costs for employees to learn how to use equipment  $400

Total costs assigned to the new equipment                                      $4,900

So, the correct options is option c.


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