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Question - On September 3, 2020, TS Company place a non-cancellable purchase order with a Japanese company for a custom-built machine. The contract price was 1,000,000 yens. The machine was delivered on December 23, 2020. The invoice was dated November 13, 2020, the shipping date (FOB Shipping point). The vendor was paid on January 7, 2021. The spot rates for the Japanese yens on the respective dates are as follows:
September 3, 2020: P0.20
November 13, 2020: P0.21
December 23, 2020: P0.22
December 31, 2020: P0.23
January 7, 2021: P0.24
Required - What amount is the capitalizable cost of the equipment?
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