Granite Company purchased a machine costing $120,000,terms 1/10,n/30.The machine was shipped FOB shipping point and freight charges were $2,000.The machine requires special mounting and wiring connections costing $10,000.When installing the machine,$1,300 in damages occurred.Compute the cost recorded for this machine assuming Granite paid within the discount period.

A) $129,800.
B) $132,100.
C) $130,800.
D) $118,800.
E) $120,100.

The cost of the machine is:
$120,000 (purchase price)
+ $2,000 (freight charges)
+ $10,000 (special mounting and wiring connections)
+ $1,300 (damages during installation)
= $133,300
Since Granite Company paid within the discount period, they get a 1% discount on the purchase price of the machine:
$120,000 × 0.01 = $1,200 discount
So the cost recorded for this machine is:
$133,300 (total cost)
- $1,200 (discount)
= $132,100
Therefore, the best choice is B.