A company purchased a POS system for $16,000 cash. In addition, the company paid $1,000 to have the equipment delivered and $500 to have it installed. The cost of this asset for financial accounting purposes is:

The correct answer is $17,500

Explanation:

In accounting, the acquisition price constitutes the valuation that is made of a purchase or acquisition.

It is the value for which said purchase is registered. Therefore, it is essential to know how the acquisition price is calculated to make a correct valuation of the acquisition. In accounting, the acquisition price constitutes the valuation that is made of a purchase or an acquisition.

The valuation of the acquisition price includes a series of elements. The main one is the sale price of the object that is acquired, that is, the value for which the seller sells the merchandise. However, to determine the acquisition price, a series of elements, directly related to the operation, must be included.

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