A manufacturing company incurred the following costs related to the purchase of an equipment on January 1, 2009:
Invoice cost, terms 1/10 n 30, fob shipping point $55,000
(Payment is made within discount period)
Shipping costs 1,000
Installation costs 1,500
First year utility costs 2,000
What cost should Bears use as a basis for depreciation?
Answer $57,000
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