Tumeng Co. acquired a piece of equipment for 1,000,000 and incurred the following additional costs: Brokers Commission 50,000 Freight cost 35,000 Freight Insurance 5,000 Installation costs 250,000 Calibration and testing costs 20,000 Training cost of the machine operators 15,000 General and administrative costs 6,000   The samples generated from testing the equipment were sold for 2,000.   Requirements: Compute for the initial cost of the equipment

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Tumeng Co. acquired a piece of equipment for 1,000,000 and incurred the following additional costs:

Brokers Commission 50,000

Freight cost 35,000

Freight Insurance 5,000

Installation costs 250,000

Calibration and testing costs 20,000

Training cost of the machine operators 15,000

General and administrative costs 6,000

 

The samples generated from testing the equipment were sold for 2,000.

 

Requirements: Compute for the initial cost of the equipment

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