Granite Company purchased a machine costing $120,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight charges were $2,000. The machine requires special mounting and wiring connections costing $10,000. When installing the machine, $1,300 in damages occurred. Compute the cost recorded for this machine assuming Granite paid within the discount period.
A) $129,800.
B) $132,100.
C) $130,800.
D) $118,800.
E) $120,100.
C) $130,800.
Explanation: Cost of Machine = ($120,000 * .99) + $2,000 + $10,000 = $130,800
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