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TP1209
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Which if the following would be debited to the equipment account

ARepairs and maintenance
BIn-transit insurance costs
CTraining employees to use the equipment
DInsurance to cover the use of the machine

Verified Answer :

lmcclaster11

i think the answer is a

Answer:

The correct Choice is: B. In-transit insurance costs

Explanation:

The cost of machinery and equipment includes:
• Purchase price (less any discounts)
• Transportation (delivery) charges
• Insurance while in transit
• Sales and other taxes
• Purchase commission
• Installation costs
• Cost of testing the asset before it is used
After the asset is up and running, the company no longer debits insurance, taxes, and
maintenance costs to the Equipment account. From that point on, insurance, taxes, repairs,
and maintenance costs are recorded as expenses. (Financial Accounting, Kemp).

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