ation inear:DuringuildingPl,160,000800,000000,000been1,220,0001,200,0001,180,000d. 1,160,000b.units.C.goodsto beargedGrey Company acquired a machine with a cash price ofabor.P2,000,000.400,0001,200,000800,000Down paymentn 000 shares of Grey Company at fair valuePrior to use, installation cost of P50,000 was incurred. Theachine has a residual value of P100,000.What is the initial measurement of the new machine?ring8. 2,000,000b. 2,400,000C. 2,050,000d. 2,450,000ryProblem 23-14 (IAA)ost.Çorner Company puchased a van with a list price ofP3,000,000. The dealer granted a 15% reduction in list pricendand an additional 10% cash discount on the net price ifpayment is made in 30 days.atIrrecoverable taxes amounted to P40,000 and the entity paidan extra P30,000 to have a special horn installed.adWhat amount should be recorded as initial cost of the van?2 2,550,0000. 2,335,500at2,365,000d. 2,325,000payment plan but a haveP120,000 was and monthlyinstallments of The cash price have beenProblem 23-12 (IAA)Note in 3 equal installments657The entity paid no the monthlyWhat be as of machine?machine has a of P100,000.

Cost of machine means the cost incurred to bring the machine in workable condition. It will include…

During Problem 23-12 (IAA) the year, Storm Company purchased a new machine. A P120.000 down payment was made and three monthly installments of P360,000. The cash price would have been payment plan but a P20,000 installation charge would have Pl,160,000 The entity paid no installation charges under the monthly been incurred with a cash purchase. What amount should be capitalized as cost of the machine? 1,220,000 1,200,000 b. 1,180,000 1,160,000

During Problem 23-12 (IAA) the year, Storm Company purchased a new machine. A P120.000 down payment was made and three monthly installments of P360,000. The cash price would have been payment plan but a P20,000 installation charge would have Pl,160,000 The entity paid no installation charges under the monthly been incurred with a cash purchase. What amount should be capitalized as cost of the machine? 1,220,000 1,200,000 b. 1,180,000 1,160,000

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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