Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Textbook Question
Chapter 11, Problem 11.1BE
Determining Acquisition Cost. Haply, Inc. incurred the following expenditures when acquiring a new assembly machine:
| Price | $175,000 |
| Sales tax | 10,500 |
| Delivery charges | 1,000 |
| Installation cost | 2,500 |
Additionally, Haply sold its old assembly machine for $500. What is the acquisition cost of the new assembly machine?
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Don Company has recently purchased a computer system for its office. The following information was gathered in relation to the acquisition of the unit: List price- P304,000 Trade discount and rebates taken- P112,000 Installation and assembly cost- P6,400 Initial delivery and handling cost- P12,800 Purchase discount- 2% What is the acquisition cost of the new computer?
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List price of the equipment
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P140,000
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138,000
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Purchase price including VAT 1,568,000
Cost of water device to keep machine cool 8,000
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Installation cost, including site preparation and assembling 20,000
Fees paid to consultants for advice on acquisition of the machinery 13,000
Present value of the estimated dismantling cost of the new machine 10,000
Repair cost of the machine damaged while in the process of installation 5,000
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Determine the cost of the Machinery
Chapter 11 Solutions
Intermediate Accounting
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