TB MC Qu$.7-56($Static$)$ A company purchased a piece of$...$

A company purchased a piece of equipment by paying $$5,000$ cash. Shipping cost of $$400$ to get the equipment to its factory was also incurred. The fair value of this equipment is $$7,000.$ For what

amount should the company report the equipment?

Multiple Choice

$$5,400$

$$7,000$

$$5,000$

$$7,400$