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  3. in january of year 1, manco purchased a new piece

In January of Year 1, Manco purchased a new piece of equipment. The equipment had...

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Accounting

In January of Year 1, Manco purchased a new piece of equipment. The equipment had a cost of $25,000. A 1% discount for early payment was offered and sales tax of 5% of the gross (before discount) price was charged. In February, the equipment was delivered and Manco was charged $900 for the delivery (this figure included a $150 charge to remove graffiti from the equipment somehow picked-up along the way). In March, Manco received a bill for $500 for additional electrical wiring required to install the new equipment. For accounting purposes, what is the cost of the plant asset?

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