Post, Freight and Carriers

Acquisition Cost?

Jackson Company purchased equipment for $40,000 with terms 3/15, n/45. It did not pay for the equipment during the discount period. It also incurred freight costs of $800 to deliver the equipment, an installation fee of $1,000 and sales tax of $2,000. What is the acquisition cost of the equipment? Please show calculations.......Thanks!

Public Comments

1. 40K + 800 + 1K = 41.8K aquisition cost