The components of the cost of a major item of equipment are given below. GHS Purchase...

 

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The components of the cost of a major item of equipment are given below. GHS Purchase price Import duties VAT (refundable) Site preparation Installation costs Pre-production costs Initial operating losses before the asset reaches planned performance 50,000 Estimated cost of dismantling and removal of the asset, recognized as a provision under IAS 37 Provisions, Contingent Liabilities and Contingent Assets 100,000 A B C D 780,000 117,000 78,000 GHS 956,000 GHS 1,055,000 GHS 1,073,000 GHS 1,201,000 30,000 28,000 18,000 In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset? 1,201,000 The components of the cost of a major item of equipment are given below. GHS Purchase price Import duties VAT (refundable) Site preparation Installation costs Pre-production costs Initial operating losses before the asset reaches planned performance 50,000 Estimated cost of dismantling and removal of the asset, recognized as a provision under IAS 37 Provisions, Contingent Liabilities and Contingent Assets 100,000 A B C D 780,000 117,000 78,000 GHS 956,000 GHS 1,055,000 GHS 1,073,000 GHS 1,201,000 30,000 28,000 18,000 In accordance with IAS 16 Property, Plant and Equipment, what amount should be recognized as the cost of the asset? 1,201,000

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C GHS 1073000 Reason Calculation of Amount to be recognize... View the full answer