Question 10.1: Compute the recorded cost of a new machine given the followi...

Fundamental Accounting Principles

Compute the recorded cost of a new machine given the following payments related to its purchase: gross purchase price, $700,000; sales tax, $49,000; purchase discount taken, $21,000; freight cost—terms FOB shipping point, $3,500; normal assembly costs, $3,000; cost of necessary machine platform, $2,500; and cost of parts used in maintaining machine, $4,200.

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