Abby Corporation acquired a new processing machine. Details of the acquisition are as follows: Invoice cost, terms, 5% discount if payment is made in 30 days. The company did pay within the discount period, P300,000, Cost of transporting the machine to the corporation's factory, P5,000. Cost of installation (which includes additional P2,000 incurred due to negligence of the workers), P11,000. The corporation's chief engineer spent one-fourth of his time during trial runs of the new machine, his monthly salary is P22,000. The company paid P1,000 for removing the old machine. (The old machine was sold for less than its book value.) At what amount should Abby Corporation capitalize the new processing machine
Abby Corporation acquired a new processing machine. Details of the acquisition are as follows: Invoice cost, terms, 5% discount if payment is made in 30 days. The company did pay within the discount period, P300,000, Cost of transporting the machine to the corporation's factory, P5,000. Cost of installation (which includes additional P2,000 incurred due to negligence of the workers), P11,000. The corporation's chief engineer spent one-fourth of his time during trial runs of the new machine, his monthly salary is P22,000. The company paid P1,000 for removing the old machine. (The old machine was sold for less than its book value.) At what amount should Abby Corporation capitalize the new processing machine
Chapter1: Financial Statements And Business Decisions
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![napu coubau
rieot mor
Abby Corporation acquired a new processing machine. Details of the
acquisition are as follows: Invoice cost, terms, 5% discount if payment is
made in 30 days. The company did pay within the discount period,
P300,000, Cost of transporting the machine to the corporation's factory,
P5,000. Cost of installation (which includes additional P2,000 incurred due
to negligence of the workers), P11,000. The corporation's chief engineer
spent one-fourth of his time during trial runs of the new machine, his
monthly salary is P22,000. The company paid P1,000 for removing the old
machine. (The old machine was sold for less than its book value.) At what
amount should Abby Corporation capitalize the new processing machine?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74e4c722-bcf9-4482-abee-77e59e05e001%2Fdb73bb35-8a8c-4734-9d63-2aa06dc255fa%2F2k8quh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:napu coubau
rieot mor
Abby Corporation acquired a new processing machine. Details of the
acquisition are as follows: Invoice cost, terms, 5% discount if payment is
made in 30 days. The company did pay within the discount period,
P300,000, Cost of transporting the machine to the corporation's factory,
P5,000. Cost of installation (which includes additional P2,000 incurred due
to negligence of the workers), P11,000. The corporation's chief engineer
spent one-fourth of his time during trial runs of the new machine, his
monthly salary is P22,000. The company paid P1,000 for removing the old
machine. (The old machine was sold for less than its book value.) At what
amount should Abby Corporation capitalize the new processing machine?
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