Problem 23-16 (LAA) At the beginning of current year, Allison Company purchased new machine on a deferred payment basis. A down payment of P200,000 was made and four annual installments of P600,000 each are to be made every vear-end. The cash equivalent price of the machine was P2,300,000. Due to an employee strike, the entity could not install the machine immediately and thus incurred P30,000 of storage st. Cost of installation excluding the storage cost amounted to P80,000. What is the initial amount to be capitalized as the cost of the machine? 2,300,000 b. 2,380,000 a. C. 2,410,000 d. 2,600,000

Problem 23-16 (LAA) At the beginning of current year, Allison Company purchased new machine on a deferred payment basis. A down payment of P200,000 was made and four annual installments of P600,000 each are to be made every vear-end. The cash equivalent price of the machine was P2,300,000. Due to an employee strike, the entity could not install the machine immediately and thus incurred P30,000 of storage st. Cost of installation excluding the storage cost amounted to P80,000. What is the initial amount to be capitalized as the cost of the machine? 2,300,000 b. 2,380,000 a. C. 2,410,000 d. 2,600,000

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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