LOQUACIOUS TALKATIVE Co. acquired a piece of factory equipment overseas on a cash basis for ₱400,000. Additional costs incurred include the following: commission paid to a broker for the purchase of the equipment, ₱20,000; import duties of ₱100,000; non-refundable purchase taxes of ₱40,000; freight cost of transferring the equipment to LOQUACIOUS’ premises, ₱4,000; costs of assembling and installing the equipment, ₱8,000; costs of testing the equipment, ₱6,000; administration and other general overhead costs, ₱16,800; and advertisement and promotion costs of the new product to be produced by the equipment, ₱15,200. The samples generated from testing the equipment were sold at ₱2,000. How much is the initial cost of the equipment?
LOQUACIOUS TALKATIVE Co. acquired a piece of factory equipment overseas on a cash basis for ₱400,000. Additional costs incurred include the following: commission paid to a broker for the purchase of the equipment, ₱20,000; import duties of ₱100,000; non-refundable purchase taxes of
₱40,000; freight cost of transferring the equipment to LOQUACIOUS’ premises, ₱4,000; costs of assembling and installing the equipment, ₱8,000; costs of testing the equipment, ₱6,000; administration and other general overhead costs, ₱16,800; and advertisement and promotion costs of the new product to be produced by the equipment, ₱15,200. The samples generated from testing the equipment were sold at ₱2,000. How much is the initial cost of the equipment?
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