Problem:
Grab Manufacturing Co. purchased a ten-ton draw press at a cost of $171,000 with terms of 1/15, n/45. Payment was made within the discount period. Shipping costs were $4,800, which included $280 for insurance in transit. Installation costs totaled $11,200, which included $4,800 for taking out a section of a wall and rebuilding it because the press was too large for the doorway.
Required:
The capitalized cost of the ten-ton draw press is:
Choose:
a) $185,290.
b) $187,790.
c) $169,290.
d) $180,490.
Note: Provide support for your rationale.