€50,000. Half is paid in cash and the other half on 11/30/X2. The useful life of the machine is 10 years, the residual value of €1,800 and the linear amortization. Transport costs are €800 and installation costs €1,100, which are paid in cash. In addition, it is estimated that dismantling costs at the end of the useful life will amount to €6,700 -with a discount rate of 1.5%. At the end of the X1 financial year, the fair value of the machine is €350,000, the cost of sale is €8,000 and the value in use is €342,586. Finally, the machine is sold at the end of December of the X2 for a value of €108,000 in cash. It is also known that VAT is 21%.
Question1
On 09/01/X1, the company Purinos García, S.A., acquires a machine for €425,000. The machine carries a discount of €50,000. Half is paid in cash and the other half on 11/30/X2.
The useful life of the machine is 10 years, the residual value of €1,800 and the linear amortization. Transport costs are €800 and installation costs €1,100, which are paid in cash. In addition, it is estimated that dismantling costs at the end of the useful life will amount to €6,700 -with a discount rate of 1.5%.
At the end of the X1 financial year, the fair value of the machine is €350,000, the cost of sale is €8,000 and the value in use is €342,586.
Finally, the machine is sold at the end of December of the X2 for a value of €108,000 in cash.
It is also known that VAT is 21%.
It is requested to record the following operations:
- Acquisition of the asset.
- Amortization at the end of X1.
- Deterioration at the end of X1 if applicable.
- Reclassification of the pending payment of the machinery.
- Payment of the pending amount.
- Sale of the machine and its accounting impacts.
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