On February 12, Laker Company purchased a tract of land as a factory site for P1,750,000. An existing building on the property was razed and constructionwas begun on a new factory building in March of the same year. Additional data are available as follows:Cost of razing old building - P350,000Title insurance and legal fees to purchase land - P125,000Architect's fees - P425,000New building construction cost - P8,750,000The recorded cost of the completed factory building should beO P9,175,000.O P9,525,000.O P9,300,000.O P9,100,000. Marburg Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P40,000, and the vendor offered a 2percent discount for payment within ten days. The following additional costs were incurred in connection with the machine:Transportation-inInstallation costTesting costs prior to regular operationIf the invoice is paid within the discount period, Marburg should record the acquisition cost of the machine atO P41,650.O P41,100.O P40,400.O P39,200.P1,200700550

On February 12, Laker Company purchased a tract of land as a factory site for P1,750,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows: Cost of razing old building - P350,000 Title insurance and legal fees to purchase land - P125,000 Architect's fees - P425,000 New building construction cost - P8,750,000 The recorded cost of the completed factory building should be O P9,175,000. O P9,525,000. O P9,300,000. O P9,100,000.

On February 12, Laker Company purchased a tract of land as a factory site for P1,750,000. An existing building on the property was razed and construction was begun on a new factory building in March of the same year. Additional data are available as follows: Cost of razing old building - P350,000 Title insurance and legal fees to purchase land - P125,000 Architect's fees - P425,000 New building construction cost - P8,750,000 The recorded cost of the completed factory building should be O P9,175,000. O P9,525,000. O P9,300,000. O P9,100,000.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EB: Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of...

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Steele Corp. purchases equipment for $30,000. Regarding the purchase, Steele paid shipping of $1,200, paid installation fees of $2,750, pays annual maintenance cost of $250, and received a 10% discount on sales price. Determine the acquisition cost of the equipment.
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