The Rosie Company (a VAT-registered company) paid P231,840, inclusive of 12% value added tax, to buy an equipment. Other costs incurred relating to this equipment are as follows: freight and insurance cost while in transit, P7,500; cost of moving equipment into place at factory P1,900; fees paid to technician for testing cost, P3,500; special plumbing fixtures required for new equipment, P2,800;Insurance paid during the first year of operation, P2,700; Maintenance cost incurred during first year of operation, P2,800. Determine the cost of acquisition of the Equipment.

The Rosie Company (a VAT-registered company) paid P231,840, inclusive of 12% value added tax, to buy an equipment. Other costs incurred relating to this equipment are as follows: freight and insurance cost while in transit, P7,500; cost of moving equipment into place at factory P1,900; fees paid to technician for testing cost, P3,500; special plumbing fixtures required for new equipment, P2,800;Insurance paid during the first year of operation, P2,700; Maintenance cost incurred during first year of operation, P2,800. Determine the cost of acquisition of the Equipment.

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

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter2: Income Tax Concepts

Section: Chapter Questions

Problem 59P

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