During its year ended 31 December 2020, Landons business acquired a new machine from China. The business
Question:
During its year ended 31 December 2020, Landon’s business acquired a new machine from China. The business incurred the following costs in relation to this machine in 2020:
In Landon’s balance sheet, what amount should appear for the cost of this machine as at 31 December 2020?
Transcribed Image Text:
Purchase price Costs of testing the machine before its first use One-year licence to operate the machine Assembly of the machine Delivery costs Cost of preparatory modifications necessary for the installation of the machine Installation of the machine One-year maintenance cover for the machine Import duties 25,000 240 360 430 510 670 750 890 920
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Related Book For
Frank Woods Business Accounting An Introduction To Financial Accounting
ISBN: 9781292365435
15th Edition
Authors: Alan Sangster, Lewis Gordon, Frank Wood
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