Falther Inc. acquired a new processing machine: Invoice cost P1,800,000 Transportation cost 50,000 Installation cost 120,000 The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired. The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month. The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier. The cost of uninstalling the old machine before installing the new unit was P10,000. 1. What amount of should be recorded as cost of the new machine?
Falther Inc. acquired a new processing machine:
Invoice cost P1,800,000
Transportation cost 50,000
Installation cost 120,000
The purchase agreement stipulated that if payment is made within 10 days, the entity will receive a 5% discount. However, the entity paid after the discount time had expired.
The new entity's main engineer spent two-thirds of his time on the new machine's trial run. The remuneration is P90,000 per month.
The company requested for an allowance from the supplier since the machine's performance was below par. A cash allowance of P100,000 was issued by the supplier.
The cost of uninstalling the old machine before installing the new unit was P10,000.
1. What amount of should be recorded as cost of the new machine?
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