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Entity A acquires equipment on January 1, 20x1. Information on costs is as follows:
Purchase price, gross of P10,000 trade discount 800,000
Non-refundable purchase taxes 20,000
Delivery and handling costs 40,000
Installation costs 30,000
Present value of decommissioning and restoration costs 10,000
Problem 1: How much is the initial cost of the equipment?
A. 870,000
B. 820,000
C. 890,000
D. 900,000
E. Answer not given
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