Anchor company purchased a manufacturing machine with a list price of $86,000 and received a 2% cash discount on the purchase. the machine was delivered under terms fob shipping point, and freight costs amounted to $2,400. anchor paid $3,300 to have the machine installed and tested. insurance costs to protect the asset from fire and theft amounted to $4,200 for the first year of operations.

based on this information, the amount of cost recorded in the asset account would be:

a)$86,680

b)$84,280.

c)$94180

d)$89,980

Option (d) is correct.

Explanation:

Given that,

List price = $86,000

Cash discount percent = 2%

freight costs = $2,400

Installation and testing = $3,300

Cost recorded in asset account:

= List price - Cash discount on the purchase + Freight + Installation and testing

= $86,000 - ($86,000 × 2%) + $2,400 + $3,300

= $89,980

Note:

The insurance cost is not included in the cost of asset, but is instead expenses during the first year.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are: