PROBLEM 8: Repertoire Company acquired a machine and incurred the following costs: Cash paid for machine, including VAT of P96,000 896,000 Cost of transporting machine 30,000 Labor cost of installation by expert fitter 50,000 Labor cost of testing machine 40,000 Insurance cost for the current year 15,000 Cost of training for personnel who will use the machine 25,000 Cost of safety rails and platform surrounding machine 60,000 Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it operate more efficiently 75,000 Estimated dismantling cost to be incurred as required by contract 65,000 What total amount should be capitalized as cost of the equipment?

PROBLEM 8: Repertoire Company acquired a machine and incurred the following costs: Cash paid for machine, including VAT of P96,000 896,000 Cost of transporting machine 30,000 Labor cost of installation by expert fitter 50,000 Labor cost of testing machine 40,000 Insurance cost for the current year 15,000 Cost of training for personnel who will use the machine 25,000 Cost of safety rails and platform surrounding machine 60,000 Cost of water device to keep machine cool 80,000 Cost of adjustment to machine to make it operate more efficiently 75,000 Estimated dismantling cost to be incurred as required by contract 65,000 What total amount should be capitalized as cost of the equipment?

Name: PROBLEM 8: Repertoire Company acquired a machine and incurred the fol
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Description: PROBLEM 8: Repertoire Company acquired a machine and incurred the following costs:Cash paid for machine, including VAT of P96,000896,000Cost of transporting machine30,000Labor cost of installation by expert fitter50,000Labor cost of testing machine4

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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