26. Adams Company purchases equipment for $30,000. Adams pay…
26. Adams Company purchases equipment for $30,000. Adams pays $1,200 to transport the equipment to its location. Adams also pays $2,000 for installation. The $2,000 installation cost includes $500 spent correcting an installation mistake. Costs required to place the equipment into service are included in the equipment’s cost. Costs caused by mistakes are recorded as expenses. What amount should Adams record as the cost of the equipment? 1. $30,000 2. $31,200 3. $32,700 4. $33,200 Instructions to students: Type in the number of the answer of your choice (type in either 1, 2, 3, or 4). Do not type in a decimal after inputting the number.