Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

LOQUACIOUS TALKATIVE Co. acquired a factory equipment overseas on cash basis for 400,000. Additional costs incurred include the following: commissions paid to brokers for the

LOQUACIOUS TALKATIVE Co. acquired a factory equipment overseas on cash basis for 400,000. Additional costs incurred include the following: commissions paid to brokers for the purchase of the equipment, 20,000; import duties of 100,000; non-refundable purchase taxes of 40,000; freight cost of transferring the equipment to LOQUACIOUS' premises, 4,000; costs of assembling and installing the equipment, 8,000; costs of testing the equipment, 6,000; administration and other general overhead costs, 16,800; and advertisement and promotion costs of the new product to be produced by the equipment, 15,200. The samples generated from testing the equipment were sold at 2,000. How much is the initial cost of the equipment?

a. 578,000 b. 594,800 c. 576,000 d. 592,800

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Social Theory An Introduction

Authors: Lisa Jack

1st Edition

1138100714, 9781138100718

More Books

Students also viewed these Accounting questions