ELIBIRD 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. 160,600 b. 103,680 c. 105,680 d. 94,080

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 9EA: Santa Rosa recently purchased a new boat to help ship product overseas. The following information is...
icon
Related questions
Question

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?

a. 160,600
b. 103,680
c. 105,680
d. 94,080
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Financial Reporting, Financial Statement Analysis…
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
CONCEPTS IN FED.TAX., 2020-W/ACCESS
CONCEPTS IN FED.TAX., 2020-W/ACCESS
Accounting
ISBN:
9780357110362
Author:
Murphy
Publisher:
CENGAGE L
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning