Determine the acquisition cost of the equipment

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1 Acquisition cost

Li  Co. purchases equipment with a list price of S22 000. Regarding the purctlase, Li:

i received a 2 per cent discount off the list price

ii paid shipping costs of $800

iii paid $1750 to install the equipment, $1200 of which was for a unique stand for the equipment

iv paid insurance: $2800 for equipment, $300 for delivery and $2500 for a two-year policy to cover operations disruption

v paid $600 to have the manufacturer train employees on safety features.

REQUIRED

Question 1: Determine the acquisition cost of the equipment. Comment on why the $600 of safety training was included or not included in the cost

Reference no: EM132461905

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