On 1 January 2020 a company purchased some plant. The invoice showed Cost of plant £61,000 Delivery of factory £850 One-year warranty covering breakdown during 2020 £700 Import duty £3,250 Installation fees £2,000 Modifications costing £3,150 were necessary to enable the plant to be installed. What amount should be capitalised for the plant in the company's accounting records?

On 1 January 2020 a company purchased some plant. The invoice showed Cost of plant £61,000 Delivery of factory £850 One-year warranty covering breakdown during 2020 £700 Import duty £3,250 Installation fees £2,000 Modifications costing £3,150 were necessary to enable the plant to be installed. What amount should be capitalised for the plant in the company's accounting records?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter8: Depreciation, Cost Recovery, Amortization, And Depletion

Section: Chapter Questions

Problem 29CE

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