DELIBIRD Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer?

DELIBIRD Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 9EB: Ronson recently purchased a new boat to help ship product overseas. The following information is...

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Determination of Acquisition Cost In January 2019, Cordova Company entered into a contract to acquire a new machine for its factory. The machine, which has a cash price of 215,000, was paid for as follows: Required: 1. Determine the cost of the machine. What principle guides the determination of the cost of the machine? 2. Prepare the journal entry to record the acquisition of the machine. 3. Next Level How would your answer change, if at all, if the 215,000 cash price were not available?
Ronson recently purchased a new boat to help ship product overseas. The following information is related to that purchase: purchase price $4,500,000 cost to bring boat to production facility $15,000 yearly insurance cost $12,000 pays annual maintenance cost of $22,000 received a 10% discount on sales price Determine the acquisition cost of the boat and record the journal entry needed.
DELIBIRD Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer? 105,680 94,080 103,680 160,600
Broed Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price P152,000 Trade discounts and rebates taken 56,000 Installation and assembly cost 3,200 Initial delivery and handling cost 6,400 Purchase discount 2% What is the acquisition cost of the new computer? a. 94,080 b. 103,680 c. 160,600 d. 105,680
Don Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price- P304,000 Trade discount and rebates taken- P112,000 Installation and assembly cost- P6,400 Initial delivery and handling cost- P12,800 Purchase discount- 2% What is the acquisition cost of the new computer?
XY Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List Price 152,000Trade discounts and rebates taken 56,000Installation and assembly cost 3,200 Initial delivery and handling cost 6,400Purchase Discount 2% What is the acquisition cost of the new computer?
Delibird company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the units List price 152,000 Trade discounts and rebates taken 56,000 installation and assembly cost 3,200 initial delivery and handling cost 6,400 purchase discount 2% what is the acquisition cost of the new computer?
Ebasan Compary acquired a new machine with an invoice cost of P1,600,000, Ebasan incurred transportation cost P50,000 and installation cost P140,000. The terms of the acquisition include a 5% discount if payment is made in 10 days. The entity paid beyond the discount period. The entity's chief engineer with monthly salary of P60,000 spent two-thirds of his time during trial run of the new machine. The entity requested an allowance from the supplier because the machine proved to be of less than standard performance capability. The supplier granted a cash allowance of P100,000. The cost of removing on aid machine before the new machine was installed amounted to P10,000. The operator of the old machine who was laid off due to the acquisition of the new machine was paid a gratuity of P30,000. What amount should Ebasan record as cost of the new machine?
The acquisition of a used machine with a purchase price of $44,994, requiring an overhaul costing $9,118, installation costs of $4,677, and special acquisition fees of $31,965 would be journalized with a debit to the asset account for Oa. $54,112 0b. 590.754 O c. $136,514 O d. $44,994The acquisition of a used machine with a purchase price of $44,994, requiring an overhaul costing $9,118, installation costs of $4,677, and special acquisition fees of $31,965 would be journalized with a debit to the asset account for Oa. $54,112 0b. 590.754 O c. $136,514 O d. $44,994.
ABC Company purchased an asset which has the following information: 1. List price of $60000 2. Sales tax of $ 3000 3. Freight charges of $1500 4. Installation charges of $5000 5. Advertising charges of $10000 6. Interest charges of $2000 Requirement: required: A. Which of the above payments must be included in the totala acquisitioncost. B. Calculate the total acquisition cost of the asset. check_circle Expert Answer thumb_up thumb_down Step 1 The cost of the asset includes all those cost which makes the asset relevant for it's intended use. These expenditure include the non refundable taxes, import duties, freight charges and installation The cost of the asset excludes those expenditures for promotional activities, administrative and other overhead expenditures, expenditure on captive consumption, expenditure incurred for opening and inaugurating new facilities. In this case advertising expenditure is excluded and Interest depends on the various factors…
ABC Corp acquired an equipment with an invoice price of P2,500,000 with terms of 3/30, n/65. Installation cost is P50,000. Decommissioning cost is P200,000. Expected useful life is 10 years and effective rate was 12% How much is the initial cost of the equipment? 2,550,000 2,539,395 2,614,395 2,750,000
On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not given