The debit for a sales tax paid on the purchase of a plant asset would be included in

A) the plant asset account
B) a separate deferred charge account
C) Miscellaneous Tax Expense
D) Accumulated Depreciation-Machinery

Deferred Charge

An expenditure paid for in one accounting period but reported as an asset because it will provide benefits in future periods.

Sales Tax

A tax imposed by governments on the sale of goods and services, collected by the retailer at the point of sale.

Plant Asset

Long-lived tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.