Anchor Company Purchased a Manufacturing Machine with a List Price

Anchor Company purchased a manufacturing machine with a list price of $160,000 and received a 2% cash discount on the purchase.The machine was delivered under terms FOB shipping point,and freight costs amounted to $2,400.Anchor paid $3,000 to have the machine installed and tested.Insurance costs to protect the asset from fire and theft amounted to $3,600 for the first year of operations.Based on this information,the amount of cost recorded in the asset account would be:

A) $156.800.
B) $159,200.
C) $165,800.
D) $162,200.

Correct Answer:

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