On 1 October 20X5 Dearing acquired a machine under the following terms. Hours 1,050,000 Manufacturer's base price Trade discount (applying to base price only) Early settlement discount taken (on the payable amount of the base cost only) Freight charges Electrical installation cost 20% 5% 30,000 28,000 40,000 Staff training in use of machine Pre-production testing Purchase of a three-year maintenance contract 22,000 60,000 On 1 October 20X7 Dearing decided to upgrade the machine by adding new components at a cost of $200,000. This upgrade led to a reduction in the production time per unit of the goods being manufactured using the machine. What amount should be recognised under non-current assets as the cost of the machine?

On 1 October 20X5 Dearing acquired a machine under the following terms. Hours 1,050,000 Manufacturer's base price Trade discount (applying to base price only) Early settlement discount taken (on the payable amount of the base cost only) Freight charges Electrical installation cost 20% 5% 30,000 28,000 40,000 Staff training in use of machine Pre-production testing Purchase of a three-year maintenance contract 22,000 60,000 On 1 October 20X7 Dearing decided to upgrade the machine by adding new components at a cost of $200,000. This upgrade led to a reduction in the production time per unit of the goods being manufactured using the machine. What amount should be recognised under non-current assets as the cost of the machine?

Name: (a)On 1 October 20X5 Dearing acquired a machine under the following t
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Description: (a)On 1 October 20X5 Dearing acquired a machine under the following terms.2$1,050,000HoursManufacturer's base priceTrade discount (applying to base price only)Early settlement discount taken (on the payable amount of the base costonly)20%5%Freight c

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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