Carter Company acquired three machines for ₱202,000 in a package deal. The three assets together had a book value of ₱160,000 on the seller's books. The three machines had the following fair values (book values are given in parentheses): Machine 1: ₱60,000 (₱40,000) Machine 2: ₱80,000 (₱50,000) Machine 3: ₱100,000 (₱70,000) The three assets should be individually recorded at a cost of (rounded to the nearest peso) Machine 1 Machine 2 Machine 3 a. ₱40,000 ₱53,333 ₱66,667 b. ₱50,000 ₱62,500 ₱87,500 c. ₱40,000 ₱50,000 ₱70,000 d. ₱50,500 ₱67,333 ₱84,167
Carter Company acquired three machines for ₱202,000 in a package deal. The three assets together had a book value of ₱160,000 on the seller's books. The three machines had the following fair values (book values are given in parentheses): Machine 1: ₱60,000 (₱40,000) Machine 2: ₱80,000 (₱50,000) Machine 3: ₱100,000 (₱70,000) The three assets should be individually recorded at a cost of (rounded to the nearest peso) Machine 1 Machine 2 Machine 3 a. ₱40,000 ₱53,333 ₱66,667 b. ₱50,000 ₱62,500 ₱87,500 c. ₱40,000 ₱50,000 ₱70,000 d. ₱50,500 ₱67,333 ₱84,167
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Carter Company acquired three machines for ₱202,000 in a package deal. The three assets together
had a book value of ₱160,000 on the seller's books. The three machines had the following fair values
(book values are given in parentheses):
Machine 1: ₱60,000 (₱40,000)
Machine 2: ₱80,000 (₱50,000)
Machine 3: ₱100,000 (₱70,000)
The three assets should be individually recorded at a cost of (rounded to the nearest peso)
Machine 1 Machine 2 Machine 3
a. ₱40,000 ₱53,333 ₱66,667
b. ₱50,000 ₱62,500 ₱87,500
c. ₱40,000 ₱50,000 ₱70,000
d. ₱50,500 ₱67,333 ₱84,167
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education