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On 1 June 2018 Robyn Ltd (Robyn) acquired a machine from Plant-R-Us Ltd under the following terms (see the table below). In addition, Robyn was
On 1 June 2018 Robyn Ltd (Robyn) acquired a machine from Plant-R-Us Ltd under the following terms (see the table below). In addition, Robyn was granted a trade discount of 10% on the initial listed price of the asset and a settlement discount of 5% if payment for the machine was received within one month of purchase. Cash was paid by Robyn on 26 June 2018. On what amount, should the plant be initially measured on 1 June 2018? Listed price of machine $ 80,000 Freight insurance $ 1,000 Freight cost $ 2,000 Assembly costs 5,000 Pre-production testing 12,000 Purchase of a ten-year maintenance contract with the Plant $ 10,000 O $88,400 O $100,000 $92,000 $88,000
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