On August purchased 1, 2004, Witten Corporation a new machine on a deferred payment basis. A down payment of P6,000 was made and 4 annual installments of P9,000 each are to be made beginning on September 1, 2004. The cash equivalent price of the machine was P38,000. Due to an employee strike, Witten could not install the machine immediately, and thus incurred P500 of storage costs. Costs of installation (excluding the storage costs) amounted to P1,200. The amount to be capitalized as the cost of the machine is P38,000 P39,200 P39,700 P42,000

On August purchased 1, 2004, Witten Corporation a new machine on a deferred payment basis. A down payment of P6,000 was made and 4 annual installments of P9,000 each are to be made beginning on September 1, 2004. The cash equivalent price of the machine was P38,000. Due to an employee strike, Witten could not install the machine immediately, and thus incurred P500 of storage costs. Costs of installation (excluding the storage costs) amounted to P1,200. The amount to be capitalized as the cost of the machine is P38,000 P39,200 P39,700 P42,000

Name: Choose the correct answer On August 1, 2004, Witten Corporationpurchas
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Description: Choose the correct answer On August 1, 2004, Witten Corporationpurchased a new machine on a deferredpayment basis. A down payment of P6,000was made and 4 annual installments of P9,000each are to be made beginning on September1, 2004. The cash equival

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 4PROB

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