3. On October 1, 2021, Chang Corporation acquired a machine priced at P720,000. Payment of this...

 

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3. On October 1, 2021, Chang Corporation acquired a machine priced at P720,000. Payment of this amount may be made within 60 days; a 10% discount is allowed if cash is paid at the time of purchase. A contract is signed whereby a down payment of P150,000 is made, with payments of P25,000 to be made at monthly intervals thereafter for the next 24 months. Required: What is the cost of the machine to be recorded at acquisition date? a. b. Assume that there is no known cash price for the machine The rate of interest prevailing at that time for similar obligations is 12%. What is the cost of the machine? Round off present value factor to 4 decimal places. 3. On October 1, 2021, Chang Corporation acquired a machine priced at P720,000. Payment of this amount may be made within 60 days; a 10% discount is allowed if cash is paid at the time of purchase. A contract is signed whereby a down payment of P150,000 is made, with payments of P25,000 to be made at monthly intervals thereafter for the next 24 months. Required: What is the cost of the machine to be recorded at acquisition date? a. b. Assume that there is no known cash price for the machine The rate of interest prevailing at that time for similar obligations is 12%. What is the cost of the machine? Round off present value factor to 4 decimal places.

Answer rating: 100% (QA)

a Cost of machine to be recorded at acquisition date Total cost of machine P720000 Less 10 d... View the full answer