Reference no: EM132865494

Problem - Acquisition Cost - On January 1, 2016, Ruby Company purchased a piece of equipment with a list price of $60,000. The following amounts were related to the equipment purchase:

Terms of the purchase were 2/10, net 30. Ruby paid for the purchase on January 8.

Freight costs of $1,000 were incurred.

A state agency required that a pollution control device be installed on the equipment at a cost of $2,500.

During installation, the equipment was damaged and repair costs of $4,000 were incurred.

Architect's fees of $6,000 were paid to redesign the work space to accommodate the new equipment.

Ruby purchased liability insurance to cover possible damage to the asset. The three-year policy cost $8,000.

Ruby financed the purchase with a bank loan. Interest of $3,000 was paid on the loan during 2016.

Required - Determine the acquisition cost of the equipment.