Metropolis Country Club purchased a new tractor to be used for golf course maintenance. The tractor cost $53,800. Metropolis borrowed the purchase price from its bank on a one-year, 7 percent note payable. Metropolis incurred the following costs:
Shipping costs..............$875
Shipping insurance ............ 150
Calibration of cutting height ......... 83

Required:
1. Compute the cost of the tractor.
2. Explain why any costs were excluded from the cost of the tractor.