Anchor Company purchased a manufacturing machine with a list price of $160,000 and received a 2% cash discount on the purchase. The machine was delivered under terms free on board (FOB)shipping point, and transportation costs amounted to $2,400. Anchor paid $3,000 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $3,600 for the first year of operations. What is the cost of the machine?
A)$156,800
B)$159,200
C)$165,800
D)$162,200

Question

Quizplus · Accepted Answer

The Answer of Anchor Company purchased a manufacturing machine with a list price of $160,000 and received a 2% cash discount on the purchase. The machine was delivered under terms free on board (FOB)shipping point, and transportation costs amounted to $2,400. Anchor paid $3,000 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $3,600 for the first year of operations. What is the cost of the machine?
A)$156,800
B)$159,200
C)$165,800
D)$162,200

Anchor Company Purchased a Manufacturing Machine with a List Price