A company purchased manufacturing equipment for $1000 by issuing a 3-month note payable. In addition, the company incurred the following costs: $300 to insure the equipment during transit, $100 to prepare a foundation for the equipment, and $500 to move the equipment from its original location to a second location.
A) The total cost is $1900.
B) The total cost is $1900, but the foundation cost is not included.
C) The total cost is $1900, but the moving cost is not included.
D) The total cost is $1000.