On January 5, 2022, Mart company places an order for a machine from a company in Japan. The machine is delivered on January 31, 2020 and the invoice price is P 900,000 with a cash discount of 1% If paid within 30 days . Import duties and taxes amount to P 45,000. The following costs were also incurred: delivery and transport costs from Japan to Mart company factory, P 7,500; Installation and commissioning cost, P 34,500; administrative costs incurred in processing, P 15,000; and start-up and pre-production costs, P 30,000. At what amount should the machine be initially recorded?
On January 5, 2022, Mart company places an order for a machine from a company in Japan. The machine is delivered on January 31, 2020 and the invoice price is P 900,000 with a cash discount of 1% If paid within 30 days . Import duties and taxes amount to P 45,000. The following costs were also incurred: delivery and transport costs from Japan to Mart company factory, P 7,500; Installation and commissioning cost, P 34,500; administrative costs incurred in processing, P 15,000; and start-up and pre-production costs, P 30,000. At what amount should the machine be initially recorded?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 5, 2022, Mart company places an order for a machine from a company in Japan. The machine is delivered on January 31, 2020 and the invoice price is P 900,000 with a cash discount of 1% If paid within 30 days . Import duties and taxes amount to P 45,000. The following costs were also incurred: delivery and transport costs from Japan to Mart company factory, P 7,500; Installation and commissioning cost, P 34,500; administrative costs incurred in processing, P 15,000; and start-up and pre-production costs, P 30,000.
At what amount should the machine be initially recorded?
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