5. Abu Ali Company purchased equipment for SR15,000. sales tax on the purchase freight charges repairs for damage during installation installation costs insurance of equipment after installation What is the cost of the equipment? a. 15,925 b. 15,500 c. 15,000 d. 16,275 SR500 200 350 225 300

5. Abu Ali Company purchased equipment for SR15,000. sales tax on the purchase freight charges repairs for damage during installation installation costs insurance of equipment after installation What is the cost of the equipment? a. 15,925 b. 15,500 c. 15,000 d. 16,275 SR500 200 350 225 300

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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Concept explainers

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.

Question

5. Abu Ali Company purchased equipment for SR15,000.
sales tax on the purchase
freight charges
repairs for damage during installation
installation costs
insurance of equipment after installation
What is the cost of the equipment?
a. 15,925
b. 15,500
c. 15,000
d. 16,275
SR500
200
350
225
300

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