Stories company purchased equipment and these costs were incurred: cash price $22,500sales taxes 1,800insurance during transit 320installation and testing 430total costs $25,050stories will record the acquisition cost of the equipment asa. $22,500.b. $24,300.c. $24,620.d. $25,050.

d. $25,050.

Explanation:

The computation of the acquisition cost is shown below:

= Cash price of equipment + sales tax + Insurance during transit + Installation and testing

= $22,500 + $1,800 + $320 + $430

= $25,050

To find out the acquisition cost, we have to consider all that cost which is related to the purchase of equipment. Since, all the costs are related, so we have to take all costs which are mentioned in the question.

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