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Question: Mobley Company purchased an asset with a list price of $37,000. Mobley received a 2% cash discount. The asset was delivered under terms FOB shipping point, and freight costs amounted to $740. Mobley paid $1,480 to have the asset installed. Insurance costs to protect the asset from fire and theft amounted to $400 for the first year of operations. Based on this information, the cost recorded in the asset account would be
$38,480.
$38,880.
$37,000.
$37,740.
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