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 ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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