On October 1, 2022, Vertical Company purchased a machine from a supplier which trade discount of 10%. An additional 4% cash discount if the account is within 30 days form the date of invoice. The machinery will be used for 6 years. Information related to this acquisition were as follows: List price of the machine acquired P4,000,000 Freight, unloading, and delivery charges for machinery acquired 110,000 Custom duties and other charges for machinery acquired 480,000 Allowances and hotel accommodation paid to foreign technicians during installation and test run of machine 600,000 Cost of training for personnel who will use the machine 230,000 How much is the cost of the machine?
On October 1, 2022, Vertical Company purchased a machine from a supplier which trade discount of 10%. An additional 4% cash discount if the account is within 30 days form the date of invoice. The machinery will be used for 6 years. Information related to this acquisition were as follows:
|
List price of the machine acquired |
P4,000,000 |
|
Freight, unloading, and delivery charges for machinery acquired |
110,000 |
|
Custom duties and other charges for machinery acquired |
480,000 |
|
Allowances and hotel accommodation paid to foreign technicians during installation and test run of machine |
600,000 |
|
Cost of training for personnel who will use the machine |
230,000 |
How much is the cost of the machine?
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