february 5, 2020, diamond company purchased a new machine on a deferred payment basis. a down payment of P100,000 and P250,000 four equal annual installments will be made every february 1, 2021. the cash equivalent price of the machine is P950,000. the imputed discount rate is 6.83%. diamond also incurred P30,000 in installation costs. how much should be capitalized as cost of the machine?

february 5, 2020, diamond company purchased a new machine on a deferred payment basis. a down payment of P100,000 and P250,000 four equal annual installments will be made every february 1, 2021. the cash equivalent price of the machine is P950,000. the imputed discount rate is 6.83%. diamond also incurred P30,000 in installation costs. how much should be capitalized as cost of the machine?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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