Joshua Bank (a NON-VAT registered entity) purchased an intangible asset from Tristan Co. for $590,000 when the exchange rate was ₱1: $.0204. A 5% discount was available on the purchase. Non-transferrable taxes paid amounted to 20% of the invoice price, net of the discount. A 12% VAT was also paid based on the amount that is gross of the non-transferrable taxes. Installation and testing costs amounted to ₱40,000. How much will be recorded as intangible asset? Question 7 options: a 36,976,059 b 33,010,598 c 33,050,589 d 36,967,059
Joshua Bank (a NON-VAT registered entity) purchased an intangible asset from Tristan Co. for $590,000 when the exchange rate was ₱1: $.0204. A 5% discount was available on the purchase. Non-transferrable taxes paid amounted to 20% of the invoice price, net of the discount. A 12% VAT was also paid based on the amount that is gross of the non-transferrable taxes. Installation and testing costs amounted to ₱40,000. How much will be recorded as intangible asset? Question 7 options: a 36,976,059 b 33,010,598 c 33,050,589 d 36,967,059
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Joshua Bank (a NON-VAT registered entity) purchased an intangible asset from Tristan Co. for $590,000 when the exchange rate was ₱1: $.0204. A 5% discount was available on the purchase. Non-transferrable taxes paid amounted to 20% of the invoice price, net of the discount. A 12% VAT was also paid based on the amount that is gross of the non-transferrable taxes. Installation and testing costs amounted to ₱40,000. How much will be recorded as intangible asset?
Question 7 options:
|
a
|
36,976,059 |
|
b
|
33,010,598 |
|
c
|
33,050,589 |
|
d
|
36,967,059 |
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