Question
1. Southridge Company incurred the following costs related to its purchase of a new assembly line: Purchase cost: Php 9,435,000 (including Php 435,000 freight and
1. Southridge Company incurred the following costs related to its purchase of a new assembly line: Purchase cost: Php 9,435,000 (including Php 435,000 freight and purchase taxes)
Recoverable purchase taxes: Php 960,000
Irrecoverable purchase taxes: Php 870,000
Installation of assembly line: Php 975,000
Training of employees: Php 195,000
Estimated repair and maintenance costs over useful life: Php 500,000
What is the amount to be recognized as asset related to the assembly line?
| a. | Php 11,280,000 |
| b. | Php 9,450,000 |
| c. | Php 9,645,000 |
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Financial Accounting
Authors: Robert Libby, Patricia Libby, Daniel G. Short
3rd Edition
0072458836, 978-0072458831
