Josey Company entered into a contract to acquire a new machine for its factory. The machine, which had a cash price of P2,000,000 was paid as follows: Down payment Note payable in 3 equal annual installments 20,000 ordinary shares with a par value of P25 and fair value of P40 per share Prior to the machine's use, installation cost of P50,000 was incurred. The machine has an estimated 400,000 1,200,000 800,000 residual value of P100,000. What is the initial cost of the machine? O 2,000,000 O 2,400,000 O 2,050,000 2,450,000

Josey Company entered into a contract to acquire a new machine for its factory. The machine, which had a cash price of P2,000,000 was paid as follows: Down payment Note payable in 3 equal annual installments 20,000 ordinary shares with a par value of P25 and fair value of P40 per share Prior to the machine's use, installation cost of P50,000 was incurred. The machine has an estimated 400,000 1,200,000 800,000 residual value of P100,000. What is the initial cost of the machine? O 2,000,000 O 2,400,000 O 2,050,000 2,450,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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