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Question - Various equipment used by ABC Corporation in its operations are either purchased from dealers or self-constructed. The company is self-constructing a manufacturing equipment incurring the following costs:
Materials and purchased parts at gross invoice price (ABC Corporation failed to take the 2% cash discount): 300,000
Imputed interest on funds used during construction (stock financing): 21,000
Labor cost: 285,000
Overhead cost - 75,000 (fixed - 30,000 and variable: 45,000)
Gain on self-construction: 45,000
Required - What is the total cost of the self-constructed equipment?
lehman corporation purchased a machine on january 2 2011 for 2000000. the machine has an estimated 5-year life with no
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