Wiley Company purchased new equipment for $60,000. Wiley paid cash for the equipment. Other costs associated with the equipment included transportation costs of $1,000, sales tax of $3,000, and installation costs of $2,500. What is the cost recorded for t

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Wiley Company purchased new equipment for $60,000. Wiley paid cash for the equipment. Other costs associated with the equipment included transportation costs of $1,000, sales tax of $3,000, and installation costs of $2,500. What is the cost recorded for the equipment?

Historic Cost:

The cost principle states that assets are to be recorded at cost and companies use and list the historic cost of the asset. This cost is the amount paid and can include any costs that are necessary and reasonable to put it into operation.

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What Are Assets? - Definition & Examples

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Chapter 2 / Lesson 17

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What are assets? Learn the meaning of an asset, the difference between personal and business assets, and who can own assets. See a list of asset examples.

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Wiley Company purchased new equipment for $60,000. Wiley paid cash for the equipment. Other costs...

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Historic Cost:

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