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Find the amount to be capitalized as the cost of the machine

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Reference no: EM133081533

Question - On August 1, 2019, Silk Corporation purchased a new machine on a deferred payment basis. A downpayment of 2,000was made and 4 annual installments of P6,000 each are to be made beginning on September 1, 2019. The cash equivalent price of the machine was P30,000. Due to an employee strike, Silk could not install the machine immediately, and thus incurred P500 of storage costs. Costs of installation (excluding the storage costs)amounted to P1,000. Find the amount to be capitalized as the cost of the machine?

Reference no: EM133081533

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