Problem - Miscellaneous costs associated with the purchase of new equipment include:
Insurance costs before the equipment is ready for use $3,000
Maintenance costs before the equipment is ready for use 500
Insurance costs after the equipment is placed into service 1,800
Cost of trial run 900
Training costs for employees to learn how to use equipment 300
What is the amount assigned to the new equipment?
A. $6,500
B. $4,200
C. $4,400
D. $4,700