A refrigeration equipment guaranteed capacity, he will deduct from the agreed price of the machine the loss of revenue that the buyer will incur during the economic life of the machine which is set at 5 years, plus 12% cost of money. One month after the machine was delivered, the buyer complained to the fabricator that he is not getting the guaranteed production. After a series of tests, it was determined that the buyer would be losing P4,000 worth of unrealized sales per year. Assuming no increase in operation cost if guaranteed production were attained, how much must the buyer deduct from the agreed price of the sold and machine? Neglecting the one month deduct.
A refrigeration equipment guaranteed capacity, he will deduct from the agreed price of the machine the loss of revenue that the buyer will incur during the economic life of the machine which is set at 5 years, plus 12% cost of money. One month after the machine was delivered, the buyer complained to the fabricator that he is not getting the guaranteed production. After a series of tests, it was determined that the buyer would be losing P4,000 worth of unrealized sales per year. Assuming no increase in operation cost if guaranteed production were attained, how much must the buyer deduct from the agreed price of the sold and machine? Neglecting the one month deduct.
Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization
Section: Chapter Questions
Problem 44P
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