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Question - On May 1, Delta Products Corporation, buys a new equipment from Blake traded.
The purchasing price of new equipment is $255,000.
Delta Products Corporation pays $3500 shipping cost to get the equipment.
Sales tax is 9%.
Freight charges for delivery of the equipment totaled $600.
Installation and training costs related to the equipment amounted to $900, set-up costs of $1500 are incurred, along with $24,000 in testing costs.
During installation, one of the pieces of equipment was accidentally damaged by an employee. Delta Products Corporation paid $400 to repair this damage.
Required - Compute the cost of Delta Products Corporation's new equipment and what necessary journal entries are passed in books of Delta Products Corporation.
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