Reference no: EM133149565

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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 $4,700 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.