A company purchased a special purpose machine on August 1 of the past year, and it was installed and ready to run on January 1 of this year. The following costs were incurred in the purchase and installation of the machine. Invoice price ---------------------------------------------------- AED 125,000 Sales tax----------------------------------------------------------AED 5250. Insurance charges----------------------------------------------- AED 1500 Adjustments to run the machine ------------------------------AED 160 Electrical and power connection charges ----------------- AED 220 Fines paid during the transport of the machinery------ AED 400 Damage repairs due to negligence of the worker----- AED 375 Compute the acquisition cost of the machinery. Do we take all or ignore few. If so why?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A company purchased a special purpose machine on August 1 of the past year, and it was installed and ready to run on January 1 of this year. The following costs were incurred in the purchase and installation of the machine. Invoice price ---------------------------------------------------- AED 125,000 Sales tax----------------------------------------------------------AED 5250. Insurance charges----------------------------------------------- AED 1500 Adjustments to run the machine ------------------------------AED 160 Electrical and power connection charges ----------------- AED 220 Fines paid during the transport of the machinery------ AED 400 Damage repairs due to negligence of the worker----- AED 375 Compute the acquisition cost of the machinery. Do we take all or ignore few. If so why?
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