Reference no: EM133095532
Question - Analyze and answer the given problem. Use a 10-column worksheet for the solution.
On March 1, 20X1 J Co. acquired a machine from N Co. under the following terms:
List price of machine P 82,000
Import duty 1,500
Delivery fees 2,050
Electrical installation costs 9,500
Pre-production testing 4,900
Purchase a five-year maintenance contract for plant 7,000
In addition to the information above, J Co. was granted a trade discount of 10% on the initial list price of the asset and a settlement of 5% if payment for the machine was received within one (1) month of purchase. The company paid the plant on March 25, 20X1.
Required - Compute the cost of machinery.