Exercise 8-1 Acquisition Cost On January 1, 2014, Ruby Company purchased a piece of equipment with…


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Exercise 8-1 Acquisition Cost On January 1, 2014, Ruby Company purchased a piece of equipment with… 1 answer below » Exercise 8-1 Acquisition Cost On January 1, 2014, Ruby Company purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase: •     Terms of the purchase were 2/10, net 30. Ruby paid for the purchase on January 8. •     Freight costs of $1,000 were incurred. •     A state agency required that a pollution control device be installed on the equipment at a cost of $2,500. LO2 ( Continued ) View complete question » Exercise 8-1 Acquisition Cost On January 1, 2014, Ruby Company purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase: •     Terms of the purchase were 2/10, net 30. Ruby paid for the purchase on January 8. •     Freight costs of $1,000 were incurred. •     A state agency required that a pollution control device be installed on the equipment at a cost of $2,500. LO2 ( Continued ) •     During installation, the equipment was damaged and repair costs of $4,000 were incurred. •     Architect’s fees of $6,000 were paid to redesign the work space to accommodate the new equipment. •     Ruby purchased liability insurance to cover possible damage to the asset. The three-year policy cost $8,000. •     Ruby financed the purchase with a bank loan. Interest of $3,000 was paid on the loan during 2014. Required Determine the acquisition cost of the equipment. LO3 EXAMPLE 8-1 LO5 EXAMPLE  8-2, 8-3 LO5 EXAMPLE 8-4 LO6 EXAMPLE 8-5 View less » Jan 29 2016 12:14 PM

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