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How much is the acquisition cost of the machine

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Reference no: EM132867123

Problem 1: On January 2, 2020, Kid Co. purchased a machine on credit terms 2/10, n/30. The invoice price was $40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: $1,200 Installation cost: $700 Testing costs prior to regular operation: $550. If the invoice is paid February 1, how much is the acquisition cost of the machine?

Option 1: $41,650
Option 2: $41,100
Option 3: $40,400
Option 4: $39,200
Option 5: none of the above

Reference no: EM132867123

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