Question: Susans Bake Shop bought a new air-conditioning system when the old one stopped working. The invoice price of the system was $45,000. Susans also had

Susan’s Bake Shop bought a new air-conditioning system when the old one stopped working. The invoice price of the system was $45,000. Susan’s also had the following expenses associated with the purchase:

Delivery charge ............... $1,925

Installation ................3,250

Power to run the system for the first year ....1,275

What amount should Susan’s record on the books for this air-conditioning system?

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