Which of the following costs would not be included in the cost of equipment? Installation Annual insurance Testing Freight

Accounting Mar 18, 2021

Which of the following costs would not be included in the cost of equipment?

1. Installation
2. Annual insurance
3. Testing
4. Freight

Expert Solution

Answer:

b .

Step-by-Step explanation

Insurance of the equipment is not included in the asset's cost. Therefore, installation cost, testing, and, freight cost all are the part of equipment's cost.

Hence, option b is correct.

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