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What total amount should be capitalized as cost of the machine? Problem 26-14 (IFRS) Repertoire Company acquired a machine and incurred the following costs: Cash
What total amount should be capitalized as cost of the machine?
Problem 26-14 (IFRS) Repertoire Company acquired a machine and incurred the following costs: Cash paid for machine, including VAT of P96,000 Cost of transporting machine 896,000 Labor cost of testing machine Labor cost of installation by expert fitter 30,000 50,000 40,000 Insurance cost for the current year 15,000 Cost of training for personnel who will use the machine 25,000 Cost of safety rails and platform surrounding machine Cost of water device to keep machine cool 60,000 80,000 Cost of adjustment to machine to make it operate more efficiently 75,000 Estimated dismantling cost to be incurred as required 65,000 by contract
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