A machine was purchased at an invoice price of P 300,000, subject to a 2% cash discount if paid within 10-days. Installation of the machine cost, P 5,000. Cost incurred in testing the machine were P 800 for the operator's time and P 1,500 for materials. The discount was lost because of late payment of the invoice. Sales tax on invoice price, 4%, and depreciation during the testing period, P 2,000. The cost that should be recorded for the machine is P 313,300 P315,300 P 311.000 P 306,000
A machine was purchased at an invoice price of P 300,000, subject to a 2% cash discount if paid within 10-days. Installation of the machine cost, P 5,000. Cost incurred in testing the machine were P 800 for the operator's time and P 1,500 for materials. The discount was lost because of late payment of the invoice. Sales tax on invoice price, 4%, and depreciation during the testing period, P 2,000. The cost that should be recorded for the machine is P 313,300 P315,300 P 311.000 P 306,000
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...
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A machine was purchased at an invoice price of P 300,000, subject to a 2% cash discount if paid within 10-days. Installation of the machine cost, P 5,000. Cost incurred in testing the machine were P 800 for the operator's time and P 1,500 for materials. The discount was lost because of late payment of the invoice. Sales tax on invoice price, 4%, and
P 313,300
P315,300
P 311.000
P 306,000
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