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What is the capitalized cost of the machinery for bts inc

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Reference no: EM132999094

BTS Inc purchased a machinery for P1,200,000. Other costs incurred were the following:

Freight - P25,000

Insurance during delivery - 30,000

Installation - 75,000

Special foundation to support the machine - 150,000

Problem 1: The machinery is estimated to be used for 5 years and has an estimated dismantling cost of P300,000. The company's normal borrowing cost is at 6%. What is the capitalized cost of the machinery?

Reference no: EM132999094

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