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
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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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