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Cost of a Fixed Asset
Metropolis Country Club purchased a new tractor to be used for golf course maintenance. The tractor cost $64,200. Metropolis borrowed the purchase price from its bank on a 1-year, 7% note payable. Metropolis incurred the following costs:
Shipping cost = $925
Shipping insurance = 180
Calibration of cutting height = 75
Required:
Compute the cost of the tractor =?
Conceptual Connection: Explain why any costs were excluded from the cost of the tractor. =?
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