Kegler Bowling installs automatic score-keeping equipment with an invoice cost of $190,000. The electrical work required for the installation costs $20,000. Additional costs are $4,000 for delivery and $13,700 for sales tax. It is estimated that the equipment could be salvaged five years from now at $55,000. What is the total recorded cost of the automatic score-keeping equipment

 $229,550  

Explanation:

The computation of the total recorded cost is shown below:

Particulars  Total costIncluded or  ExcludedMachineryExpense

Invoice cost$190,000Included                         $190,000  

Electrical work

required

for installation  $20,000included                         $20,000  

Delivery costs  $4,000         included                          $4,000  

Sales tax      $13,700         included                           $13,700  

Repair costs   $1,850          excluded                                   $1,850

Total            $229,550                                      $227,700$1,850

The invoice cost, electrical cost, delivery cost, sales tax included in the machinery and the repair cost is an expense so it come under the expense  

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