- Entity A acquires equipment on January 1, 20x1. Information on costs is as follows:Purchase price, gross of Php 10,000 trade discountNon-refundable purchase taxesDelivery and handling costsInstallation costs800,00020,00040,00030,000Present value of decommissioning and restorationCosts10,000How much is the initial cost of the equipment?a. 900,000b. 820,000c. 870,000d. 890,000

Net purchase price = Gross price - trade discount = 800,000 - 10,000 = 790,000

- Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of Php 10,000 trade discount Non-refundable purchase taxes Delivery and handling costs Installation costs Present value of decommissioning and restoration Costs 800,000 20,000 40,000 30,000 10,000 How much is the initial cost of the equipment? a. 900,000 b. 820,000 c. 870,000 d. 890,000

- Entity A acquires equipment on January 1, 20x1. Information on costs is as follows: Purchase price, gross of Php 10,000 trade discount Non-refundable purchase taxes Delivery and handling costs Installation costs Present value of decommissioning and restoration Costs 800,000 20,000 40,000 30,000 10,000 How much is the initial cost of the equipment? a. 900,000 b. 820,000 c. 870,000 d. 890,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 5EA: Steele Corp. purchases equipment for $25,000. Regarding the purchase, Steele recorded the following...

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