A company purchased equipment on June 28 of the current year and placed it in service on August 1. The following costs were incurred in acquiring the equipment: Purchase (invoice) price$215,600Transportation1,400Insurance during shipping200One-year fire insurance beginning August 1 of the current year1,200Installation cost4,500Raw materials and direct labor used to test the equipment.1,500Determine the amount to be recorded as cost for the equipment.
What will be an ideal response?
| Purchase (invoice) price | $215,600 |
| Transportation | 1,400 |
| Insurance during shipping | 200 |
| Installation costs | 4,500 |
| Raw materials and direct labor to test equipment | 1,500 |
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Franchise Termination. In 1981 the Huangs entered into a franchise agreement with Holiday Inns, Inc, under which the Huangs agreed to adhere to the quality standards established by Holiday Inns and to comply in every respect with the Holiday Inns
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