A company purchased new equipment for $60,000. the company paid cash for the equipment. other costs associated with the equipment were: transportation costs, $1,000; sales tax paid $4,000; and installation cost, $2,500. the correct amount to capitalize in the equipment account would be:
a. $67,500
b. $64,000
c. $66,500
d. $60,000
e. $65,500