Mel Company acquired a new machinery On August 15, 2022. The following data are available: P 1,400,000 20,000 40,000 15,000 50,000 30,000 Invoice price Cash discount available but not taken on purchase Freight paid on the new machinery Cost of removing the old machinery Installation cost of the new machinery Testing cost before the new machinery was put into regular operation Proceeds from the sale of samples produced during testing Cost of training employees which improved their efficiency Loss on premature retirement of the old machinery Estimated cost of manufacturing similar machinery in the entity's own plant, including overhead Compute for the cost of the new machinery 5,000 10,000 5,000 1,300,000

Mel Company acquired a new machinery On August 15, 2022. The following data are available: P 1,400,000 20,000 40,000 15,000 50,000 30,000 Invoice price Cash discount available but not taken on purchase Freight paid on the new machinery Cost of removing the old machinery Installation cost of the new machinery Testing cost before the new machinery was put into regular operation Proceeds from the sale of samples produced during testing Cost of training employees which improved their efficiency Loss on premature retirement of the old machinery Estimated cost of manufacturing similar machinery in the entity's own plant, including overhead Compute for the cost of the new machinery 5,000 10,000 5,000 1,300,000

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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Explain to what extent the value of the diesel lorry is to be imparied. Support your answer with calculations.
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