A business has recently expanded its production capacity by installing some additional machinery. The associated costs were as follows: Cost of machinery £285,000 Delivery charges 27,000 Installation costs 25,000 Spare parts 68,000 Extended warranty 15,000 Import tax 21,000 The amount at which this machinery will be valued and shown in the Statement of Financial Position as its historical cost is: £285,000 £358,000 £380,000 £441,000
A business has recently expanded its production capacity by installing some additional machinery. The associated costs were as follows:
Cost of machinery £285,000
Delivery charges 27,000
Installation costs 25,000
Spare parts 68,000
Extended warranty 15,000
Import tax 21,000
The amount at which this machinery will be valued and shown in the Statement of Financial Position as its historical cost is:
- £285,000
- £358,000
- £380,000
- £441,000
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