Rover, Inc. acquired a new machine:Invoice cost, 5%/10, n/30Transportation costInstallation costThe new entity's main engineer spent two-thirds of his time on the new machine's trial run. The salary of the mainengineer is P90,000 per month.P 1,940,000P1,800,000The cost of insurance of the the new machine for the first year was P10,000.P 1,980,00050,000What amount should be recorded as the cost of new machine?P 2,070,000120,000P 1,950,000

Machine is considered as one of the fixed or non-current assets of the company. Fixed assets of the…

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What amount should be recorded as the cost of new machine? P 1,940,000 P 1,980,000 P 2,070,000 P 1,950,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Rover, Inc. acquired a new machine:
Invoice cost, 5%/10, n/30
Transportation cost
Installation cost
The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The salary of the main
engineer is P90,000 per month.
P 1,940,000
P1,800,000
The cost of insurance of the the new machine for the first year was P10,000.
P 1,980,000
50,000
What amount should be recorded as the cost of new machine?
P 2,070,000
120,000
P 1,950,000

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