XYZ Corp. acquired a new equipment. It had the following details: Invoice price of the machinery P 2,000,000 Trade discount 3% Cash discount but not taken 50,000 Freight 60,000 Cost of removing old machinery 30,000 Carrying value of the old equipment 300,000 Loss on retirement of equipment 70,000 Dismantling cost of old equipment (estimated at the beginning and incurred on date of dismantling) 50,000 Installation cost of new machinery 60,000 1. What is the capitalized cost of the new machinery?
XYZ Corp. acquired a new equipment. It had the following details: Invoice price of the machinery P 2,000,000 Trade discount 3% Cash discount but not taken 50,000 Freight 60,000 Cost of removing old machinery 30,000 Carrying value of the old equipment 300,000 Loss on retirement of equipment 70,000 Dismantling cost of old equipment (estimated at the beginning and incurred on date of dismantling) 50,000 Installation cost of new machinery 60,000 1. What is the capitalized cost of the new machinery?
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 14PB: Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia...
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XYZ Corp. acquired a new equipment. It had the following details:
Invoice price of the machinery P 2,000,000
Trade discount 3%
Cash discount but not taken 50,000
Freight 60,000
Cost of removing old machinery 30,000
Carrying value of the old equipment 300,000
Loss on retirement of equipment 70,000
Dismantling cost of old equipment (estimated at
the beginning and incurred on date of
dismantling) 50,000
Installation cost of new machinery 60,000
1. What is the capitalized cost of the new machinery?
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