Please answer the following. Show the complete solution. Thank you so much. 1. Jerome Corporation purchased a Xerox and a Printer on January 2, 2016. Both acquisitions were made on deferred payment basis. The Xerox was purchased from Photoshop Corporation by issuing P100,000 non-interest bearing note payable after 3 years. On the other hand, the Printer was purchased from Inkshop Inc. by issuing P80,000 non-interest bearing note payable on four equal installments every December 31 starting on December 31, 2016. Both equipment has no readily market value/cash price value. Jerome’s most recent borrowing rate is 10%. What is the acquisition cost of Xerox and Printer, respectively? a. P75,130 and P63,398 b. P100,000 and P63,398 c. P100,000 and P80,000 d. P75,130 and P80,000

Please answer the following. Show the complete solution. Thank you so much. 1. Jerome Corporation purchased a Xerox and a Printer on January 2, 2016. Both acquisitions were made on deferred payment basis. The Xerox was purchased from Photoshop Corporation by issuing P100,000 non-interest bearing note payable after 3 years. On the other hand, the Printer was purchased from Inkshop Inc. by issuing P80,000 non-interest bearing note payable on four equal installments every December 31 starting on December 31, 2016. Both equipment has no readily market value/cash price value. Jerome’s most recent borrowing rate is 10%. What is the acquisition cost of Xerox and Printer, respectively? a. P75,130 and P63,398 b. P100,000 and P63,398 c. P100,000 and P80,000 d. P75,130 and P80,000

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter11: Property Dispositions

Section: Chapter Questions

Problem 84TA

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