What is the total amount to be capitalized

Reference no: EM132958545

Renvir Company made the following acquisitions during the year:

- Purchased a new machine on an installment payment basis. A down payment of 200,000 was made and 5 monthly installments of 200,000 are to be made at the end of each month. The cash equivalent price of the machine was 1,000,000. The entity incurred and paid installation cost amounting to 50,000

- Exchanged an old packing machine which cost 1,500,000 and was 40% depreciated, for another used machine and paid a cash difference of 200,000. The fair value of the old packing machine was determined to be 1,000,000 What is the total amount to be capitalized as a cost of machinery?

The audit of JR Company for the year ended December 31, 2020 was completed on March 1, 2021.The financial statements were sign by the managing director March 15, 2021 and approved by the shareholders on March 31, 2021. The entity's issued share capital comprised 100,000 ordinary share with P100 par value per share. The entity issued additional 250,000 share on March 1, 2021 par value. What amount is to be adjusted in the financial statements by the event after the reporting period?

Reference no: EM132958545

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