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How much is the initial cost of the equipment

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Question - Sebastian Co. acquired a piece of equipment. The invoice price was P2,500,000 subject to a prompt discount of 3% which was not taken. Installation costs amounted to P50,000. Legislation requires Sebastian Co. to decommission the asset at the end of the asset's useful life of 10 years. Sebastian Co. estimated that the decommissioning activities would cost P200000. The appropriate discount rate on initial recognition was 12%. How much is the initial cost of the equipment?

Reference no: EM133058423

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