Surigao Company acquired a new machinery. Invoice price of the machinery 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 machinery was put into regular operation including P10,000 in wages of the regular machinery operator Loss on premature retirement of the old machinery Estimated cost of manufacturing similar machinery including overhead What should Surigao capitalize as new cost of the new machinery? 1,400,000 20,000 40,000 15,000 50,000 30,000 5,000 1,300,000
Surigao Company acquired a new machinery. Invoice price of the machinery 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 machinery was put into regular operation including P10,000 in wages of the regular machinery operator Loss on premature retirement of the old machinery Estimated cost of manufacturing similar machinery including overhead What should Surigao capitalize as new cost of the new machinery? 1,400,000 20,000 40,000 15,000 50,000 30,000 5,000 1,300,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 4E: Determination of Acquisition Cost In January 2019, Cordova Company entered into a contract to...
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Transcribed Image Text:Surigao Company acquired a new machinery.
Invoice price of the machinery
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 machinery was put into
regular operation including P10,000 in wages of the regular machinery operator
Loss on premature retirement of the old machinery
Estimated cost of manufacturing similar machinery including overhead
What should Surigao capitalize as new cost of the new machinery?
1,400,000
20,000
40,000
15,000
50,000
30,000
5,000
1,300,000
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