On January 1, 2019, Sinaran purchased equipment. Following are the costs incurred in connection with the purchase of this equipment: - Purchase price of IDR 500,000,000 plus 10% VAT (IDR 50,000,000) which can be credited - The company pays an independent professional to modify the equipment to fit the specifications desired by the company. The fee paid for professional services is IDR 40,000,000 and for the spare part costs for the modification purposes IDR 10,000,000. - The cost of testing the equipment so that it functions according to its purpose is Rp.25,000,000. - The proceeds from the sale of goods resulting from the testing process are IDR 5,000,000. Requested: Calculate the cost of the equipment according to PSAK 16

On January 1, 2019, Sinaran purchased equipment. Following are the costs incurred in connection with the purchase of this equipment: - Purchase price of IDR 500,000,000 plus 10% VAT (IDR 50,000,000) which can be credited - The company pays an independent professional to modify the equipment to fit the specifications desired by the company. The fee paid for professional services is IDR 40,000,000 and for the spare part costs for the modification purposes IDR 10,000,000. - The cost of testing the equipment so that it functions according to its purpose is Rp.25,000,000. - The proceeds from the sale of goods resulting from the testing process are IDR 5,000,000. Requested: Calculate the cost of the equipment according to PSAK 16

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter10: Cost Recovery On Property: Depreciation, Depletion, And Amortization

Section: Chapter Questions

Problem 49P

See similar textbooks

Similar questions

Marburg Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P40,000, and the vendor offered a 2 percent discount for payment within ten days. The following additional costs were incurred in connection with the machine: Transportation-in Installation cost Testing costs prior to regular operation If the invoice is paid within the discount period, Marburg should record the acquisition cost of the machine at O P41,650. O P41,100. O P40,400. O P39,200. P1,200 700 550
Globe Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product.Professional fees paid to consultants to conduct market study-----P 250,000Fees paid to engineers and experts for initial research-- 150,000Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000Legal fees to obtain patent---P100,000Licensing fees paid to the patent office --P 25,000Legal costs paid to defend patent against infringement suit --P 47,000What is the cost of patent?
Smart Company incurred the following costs in 2021, in relation to developing a machine that will be used in manufacturing a product.Professional fees paid to consultants to conduct market study-----P 250,000Fees paid to engineers and experts for initial research-- 150,000Cost of equipment used for research. The equipment will be used for other research projects. The useful life of the equipment is 5 years----P300,000Legal fees to obtain patent---P100,000Licensing fees paid to the patent office --P 25,000Legal costs paid to defend patent against infringement suit --P 47,000What is the cost of patent?
Marburg Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P4,000,000, and the vendor offered a 3 percent discount for payment within ten days. The following additional costs were incurred in connection with the machine: Transportation-in 120,000 Installation cost 70,000 Testing costs prior to regular operation 55,000 If the invoice is paid beyond the discount period, Marburg should record the acquisition cost of the machine at what amount?
Sheridan Company incurs the following costs in purchasing equipment: invoice price, $40,500; shipping, $1,025; installation and testing, $1,600; one-year insurance policy, $2,750.What is the cost of the equipment?
Invaders Ltd recently purchased a cutting machine from one of its suppliers. The machine was purchased on 01 March 2019 and brought into use on 01 May 2019. The financial year end of the company is 28 February. The following costs were incurred relating to the purchase of the machine: Purchase Price Delivery costs Administration costs Import duties (non-refundable) Staff party to celebrate the acquisition of the new machine Testing to ensure that machine is fully operational Installation costs The following table indicates the number of units produced over a 3-month period: March-May 2019 150 000 units June-August 2019 220 000 units 180 000 units 230 000 units 195 000 units 232 000 units 180 000 units 255 000 units September-November 2019 December-February 2020 March-May 2020 June-August 2020 September-November 2020 December-February 2021 Rand The machine has a residual value of R80 000 and will be depreciated using the units of production method. The machine is expected to produce a…
On January 2, 2020, ABC Co. purchased a machine on credit terms 2/10, n/30. The invoice price was P40,000. Additional costs incurred in connection with the machine are as follows: Transportation-in: P1,200 Installation cost: P700 Testing costs prior to regular operation: P550 If the invoice is paid February 1, the acquisition cost of the machine must be a. P41,650 b. P41,100 c. P40,400 d. P39,200 e. answer not given
On 1/1 2019, the Al-Qadhafi Industrial Company purchased an automated packaging line at a price of $60,000, and the company paid in cash the fees for transporting a packaging line $55,000, the work costs of a special base for the line $135,000, and the costs of conducting start-up experiments at $150,000. The company estimated the shelf life of the packaging line 6 years, the scrap value $400,000 and it is depreciated according to the straight line. On December 31, 2019, it was found that the fair market value of the packaging line, minus its selling costs, equals $11,750,000, and its remaining life is 4 years, not 5 years. Required 1- Acknowledgment of the operations related to the packaging line in the books of the Food Industries Company:• Costs incurred to get the packaging line ready for use• Inventory adjustments at the end of 2019• Impairment in the value of the packaging line at the end of 2019• Inventory adjustments at the end of 2020• 2- Preparing the partial financial…
Leody Company purchased a machine on December 1, 2020 at an invoice price of P4,500,000 with terms 2/10, n/30. On December 10, 2020, Leody paid the required amount for the machine. On December 1, 2020, Leody paid P80,000 for delivery of the machine and on December 31, 2020, it paid P310,000 for installation and testing of the machine. The machine was ready for use on January 1, 2021. It was estimated that the machine would have a useful life of 5 years and a residual value of P800,000. Engineering estimate indicated that the useful life in productive units was 200,000. Units actually produced during the first two years were 30,000 in 2021 and 48,000 in 2022. Leody Company decided to use the output method of depreciation. What is the accumulated depreciation of the machine on December 31, 2022?
ABC Co. imported a machine on January 2, 2020 for P550,000. In addition, ABC Co. incurred these costs: import and custom duties: P30,000 non-refundable purchase taxes: P20,000 transportation: P5,000 installing the machine: P2,600 testing and trial run: P3,000 The cost of the machine must be * P550,000 P560,600 P587,600 P610,600 answer not given
ABC Co. imported a machine on January 2, 2020 for P550,000. In addition, ABC Co. incurred these costs: import and custom duties: P30,000 non-refundable purchase taxes: P20,000 transportation: P5,000 installing the machine: P2,600 testing and trial run: P3,000 The cost of the machine must be * P550,000 P560,600 P587,600 P610,600
Blossom Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2026 at à cost of $1,077,300. At December 31, 2025, the raw materials to be purchased have a market value of $1,027,500. In 2026, Blossom paid $1,077,300 to obtain the raw materials which were worth $1,027.500. Prepare the entry to record the purchase assuming the company uses a periodic inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry for the account titles and enter O for the amounts.)