On September 7, 2020, Paseo Company incurred the following costs for one of its printing presses: Purchase of stapling attachment: P900,000 Installation of attachment: P200,000 Replacement parts for renovation of press: P600,000 Labor and overhead in connection with renovation of press: P280,000. Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized? * P1,980,000 P1,100,000 P900,000 P880,000
On September 7, 2020, Paseo Company incurred the following costs for one of its printing presses: Purchase of stapling attachment: P900,000 Installation of attachment: P200,000 Replacement parts for renovation of press: P600,000 Labor and overhead in connection with renovation of press: P280,000. Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized? * P1,980,000 P1,100,000 P900,000 P880,000
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 66P
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On September 7, 2020, Paseo Company incurred the following costs for one of its printing presses: Purchase of stapling attachment: P900,000 Installation of attachment: P200,000 Replacement parts for renovation of press: P600,000 Labor and overhead in connection with renovation of press: P280,000. Neither the attachment nor the renovation increased the estimated useful life of the press. However, the renovation resulted in significantly increased productivity. What amount of the costs should be capitalized? *
P1,980,000
P1,100,000
P900,000
P880,000
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