1) In January 2022, Utah Corporation entered into a contract to acquire a new machine for its factory. The machine, which had a cash price of P2.000,000, was paid for as follows: Down payment 5.000 ordinary shares of Utah with an agreed-upon value of P370 per share 300,000 1.850,000 2.150.000 Prior to the machine's use, installation costs of P70.000 were incurred. The machine has an estimated useful life of 10 years and an estimated salvage value of P100,000. The straight line method of depreciation is used. What is the cost of the machinery purchased on January 2022? A 1.850,000 B. 2.150,000 C. 2,000,000 D. 2,300,000
1) In January 2022, Utah Corporation entered into a contract to acquire a new machine for its factory. The machine, which had a cash price of P2.000,000, was paid for as follows: Down payment 5.000 ordinary shares of Utah with an agreed-upon value of P370 per share 300,000 1.850,000 2.150.000 Prior to the machine's use, installation costs of P70.000 were incurred. The machine has an estimated useful life of 10 years and an estimated salvage value of P100,000. The straight line method of depreciation is used. What is the cost of the machinery purchased on January 2022? A 1.850,000 B. 2.150,000 C. 2,000,000 D. 2,300,000
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 62P
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