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- Marburg Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P40,000, and the vendor offered a 2 percent discount for payment within ten days. The following additional costs were incurred in connection with the machine: Transportation-in Installation cost Testing costs prior to regular operation If the invoice is paid within the discount period, Marburg should record the acquisition cost of the machine at O P41,650. O P41,100. O P40,400. O P39,200. P1,200 700 550Marburg Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P4,000,000, and the vendor offered a 3 percent discount for payment within ten days. The following additional costs were incurred in connection with the machine: Transportation-in 120,000 Installation cost 70,000 Testing costs prior to regular operation 55,000 If the invoice is paid beyond the discount period, Marburg should record the acquisition cost of the machine at what amount?Leody Company purchased a machine on December 1, 2020 at an invoice price of P4,500,000 with terms 2/10, n/30. On December 10, 2020, Leody paid the required amount for the machine. On December 1, 2020, Leody paid P80,000 for delivery of the machine and on December 31, 2020, it paid P310,000 for installation and testing of the machine. The machine was ready for use on January 1, 2021. It was estimated that the machine would have a useful life of 5 years and a residual value of P800,000. Engineering estimate indicated that the useful life in productive units was 200,000. Units actually produced during the first two years were 30,000 in 2021 and 48,000 in 2022. Leody Company decided to use the output method of depreciation. What is the accumulated depreciation of the machine on December 31, 2022?
- ABC Co. imported a machine on January 2, 2020 for P550,000. In addition, ABC Co. incurred these costs: import and custom duties: P30,000 non-refundable purchase taxes: P20,000 transportation: P5,000 installing the machine: P2,600 testing and trial run: P3,000 The cost of the machine must be a. P550,000 b. P560,600 c. P587,600 d. P610,600 e. answer not givenOn August 1, 2018, Banco Company purchased a new machine on a deferred payment basis. A down payment of P 100 000 was made and 4 monthly installments of P 250 000 each are to be made beginning on September 1, 2018. The cash equivalent price of the machine was P 950 000. The entity incurred and paid installation costs amounting to P 30 000. What is the amount to be capitalized as cost of the machine?On January 1, 2020, Bing Company acquired equipment on credit. The terms were $8,000 cash down payment plus payments of $6,000 on January 1 for each of the next four years. The implicit interest rate was 6%. The equipment’s list price was $30,000. Additional costs of $2,000 were incurred to install the equipment. Determine the value at which Ling should report the acquired asset. Show your calculations. For any measurement involving present value concepts, provide your calculations.
- Banco Company acquired a new machine on a delayed payment basis on August 1, 2018. A down payment of P100,000 was made, with four monthly instalments of P250,000 to commence on September 1, 2018. The machine's cash equivalent price was P 950 000. The entity spent and paid P 30 000 in installation fees. What is the sum to be capitalised as the machine's cost?Situation 2: Malcolm Limited acquired a truck to deliver and install its specialized products at the customer's site. The vehicle's list price was $135,000, but customization added another $30,000 in costs. Malcolm took delivery of the truck on September 30, 2020, with a down payment of $15,000, signing a four-year, 8.0% note for the remainder, payable in equal payments of $43,488 beginning September 30, 2021. Malcolm expected the truck to be usable for 500 deliveries and installations. After that, the product's technology would have changed and made the vehicle obsolete. In late July 2023, the truck was destroyed when a concrete garage collapsed. Malcolm used the truck for 45 deliveries in 2020, 125 in 2021, 134 in 2022, and 79 in 2023. The company received a cheque for $12,000 from the insurance company and paid what remained on the note. Required #2: Prepare all entries that are needed to record the events and activities related to the truck, the note, and its interest, including…On January 31, 2020, Manning Company acquired a new machine by paying $40,000 cash and agreeing to pay $20,000 annually for four years, beginning on January 31, 2021. Assuming an interest rate of 10%, Manning should record the acquisition cost of the machine on January 31, 2020, at a.$120,000. b.$109,737. c.$103,397. d.$102,092
- ABC Co. imported a machine on January 2, 2020 for P550,000. In addition, ABC Co. incurred these costs: import and custom duties: P30,000 non-refundable purchase taxes: P20,000 transportation: P5,000 installing the machine: P2,600 testing and trial run: P3,000 The cost of the machine must be * P550,000 P560,600 P587,600 P610,600 answer not givenBebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment with an invoice price of P1,680,000 on March 5, 2022. How much would be the claimable input VAT on the second quarter of 2021? Bebe Co. purchased equipment costing P560,000 on March 5, 2021. How much would be the claimable input VAT on the second quarter of 2021?ABC Co. imported a machine on January 2, 2020 for P550,000. In addition, ABC Co. incurred these costs: import and custom duties: P30,000 non-refundable purchase taxes: P20,000 transportation: P5,000 installing the machine: P2,600 testing and trial run: P3,000 The cost of the machine must be * P550,000 P560,600 P587,600 P610,600