Watauga company purchased equipment on july 1, 2017 for $70,000. sales tax on the purchase was $700. other costs incurred were freight charges of $800, insurance during shipping of $ 150, repairs of $1,300 for damage during installation, and installation costs of $1, 050. what is the cost of the equipment?

$72,700

Explanation:

Data provided in the question:

Purchasing cost = $70,000

Sales tax = $700

Freight charges = $800

Shipping charges = $150

Repair charges = $1,300

Installation cost = $1,050

Now,

Cost of the equipment  

= Purchasing cost + Sales tax + Freight charges + Shipping charges + Installation cost

= $70,000 + $700 + $800 + $150 + $1,050

= $72,700

Note: Repair cost is not included in the cost.

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