Anchor Company purchased a manufacturing machine with a list price of $90,000 and received a 2% cash discount on the purchase. The machine was delivered under terms FOB shipping point, and transportation costs amounted to $3200. Anchor paid $4500 to have the machine installed and tested. Insurance costs to protect the asset from fire and theft amounted to $5800 for the first year of operations. What is the cost of the machine?

A. $95,900
B. $101,700
C. $91,400
D. $88,200


Answer: A

Business

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