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NCT Manufacturing Company purchased a machine on January 2, 2021. The invoice price of the machine was P4,000,000, and the vendor offered a 3 percent discount for payment within ten days.
The following additional costs were incurred in connection with the machine:
Transportation-in 120,000 Installation cost 70,000 Testing costs prior to regular operation 55,000
Problem 1: If the invoice is paid beyond the discount period, NCT should record the acquisition cost of the machine at what amount?
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