Illustration: Cost of Purchase ABC Co., a VAT player, imported goods from a foreign supplier and incurred the following costs: Purchase price 100,000 Import duties 10,000 Value added tax 13,000 5,000 Transportation and handling costs Commission to broker 2,000 130,000 Required: How much is the cost of purchase of the imported goods

Illustration: Cost of Purchase ABC Co., a VAT player, imported goods from a foreign supplier and incurred the following costs: Purchase price 100,000 Import duties 10,000 Value added tax 13,000 5,000 Transportation and handling costs Commission to broker 2,000 130,000 Required: How much is the cost of purchase of the imported goods

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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Question

Illustration: Cost of Purchase
ABC Co., a VAT player, imported goods from a foreign supplier
and incurred the following costs:
Purchase price
100,000
Import duties
10,000
Value added tax
13,000
5,000
Transportation and handling costs
Commission to broker
2,000
130,000
Required: How much is the cost of purchase of the imported goods?

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