The machine has a useful life of five years and salvage, Accounting Basics

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The machine has a useful life of five years and salvage

Problem

Pearl Company purchased a piece of equipment for $9,000. During the machine produced 1,000 units of which 600 were sold. The machine was installed at a cost of $300 and delivery charges were $200.00. The machine has a useful life of five years and salvage value of $1, 500. What is the original cost of this machine should be recorded?

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Accounting Basics: The machine has a useful life of five years and salvage

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