On January 1 2017 Ruby Company purchased a piece of

#8974
On January 1, 2017, Ruby Company purchased a piece of equipment with a list price of
$60,000. The following amounts were related to the equipment purchase:• Terms of the
purchase were 2/10, net 30. Ruby paid for the purchase on January 8.• Freight costs of $1,000
were incurred.• A state agency required that a pollution control device be installed on the
equipment at a cost of $2,500.• During installation, the equipment was damaged and repair
costs of $4,000 were incurred.• Architect's fees of $6,000 were paid to redesign the work space
to accommodate the new equipment.• Ruby purchased liability insurance to cover possible
damage to the asset. The three-year policy cost $8,000.• Ruby financed the purchase with a
bank loan. Interest of $3,000 was paid on the loan during 2016.RequiredDetermine the
acquisition cost of the equipment.View Solution:
On January 1 2017 Ruby Company purchased a piece of

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