Ahmad Taher pays an American supplier QR 25,000 for a machine. Freight costs of 3% and import duties of 10% are also paid. The business pays the German manufacturer an additional 4% to have their engineer install the machine. We also have to pay 1.5% for adjustments to our factory to house the machine. We pay QR 2.5% per year in insurance premiums for the machine, QR 1800 for fuel, an additional QR 570 per year in additional electricity costs. Calculate the cost of asset.
Ahmad Taher pays an American supplier QR 25,000 for a machine. Freight costs of 3% and import duties of 10% are also paid. The business pays the German manufacturer an additional 4% to have their engineer install the machine. We also have to pay 1.5% for adjustments to our factory to house the machine. We pay QR 2.5% per year in insurance premiums for the machine, QR 1800 for fuel, an additional QR 570 per year in additional electricity costs. Calculate the cost of asset.
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter19: Lease Financing
Section: Chapter Questions
Problem 6P: Big Sky Mining Company must install 1.5 million of new machinery in its Nevada mine. It can obtain a...
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![se
Of
Activity No. 7
Ahmad Taher pays an American supplier QR 25,000 for a machine. Freight
costs of 3% and import duties of 10% are also paid. The business pays
the German manufacturer an additional 4% to have their engineer install
the machine. We also have to pay 1.5% for adjustments to our factory to
house the machine. We pay QR 2.5% per year in insurance premiums for
the machine, QR 1800 for fuel, an additional QR 570 per year in additional
electricity costs. Calculate the cost of asset.
Original Cost
Freight
Import Duties
Item
Installation costs (Engineer)
Installation costs (Construction)
Cost of asset
Calculations
QAR Value
1200 lonigho
tripis17
(senigna) 21200 noitollotani
(nounizno)) 21205 noitolintani
ulov spovip2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F74cf2dd0-9d35-4848-bd1c-bd7f594b2855%2Fd831e4cd-47cf-46aa-860a-2ee20cd2b75e%2F8jfy3ih_processed.jpeg&w=3840&q=75)
Transcribed Image Text:se
Of
Activity No. 7
Ahmad Taher pays an American supplier QR 25,000 for a machine. Freight
costs of 3% and import duties of 10% are also paid. The business pays
the German manufacturer an additional 4% to have their engineer install
the machine. We also have to pay 1.5% for adjustments to our factory to
house the machine. We pay QR 2.5% per year in insurance premiums for
the machine, QR 1800 for fuel, an additional QR 570 per year in additional
electricity costs. Calculate the cost of asset.
Original Cost
Freight
Import Duties
Item
Installation costs (Engineer)
Installation costs (Construction)
Cost of asset
Calculations
QAR Value
1200 lonigho
tripis17
(senigna) 21200 noitollotani
(nounizno)) 21205 noitolintani
ulov spovip2
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