Extra Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs 200,000 Costs of site preparation 600,000 Consultants used for advice on the acquisition of the machine 700,000 Installation and assembly costs 500,000 Costs of testing 100,000 Costs of training employees on how to use the machine 80,000 Estimated dismantling costs to be incurred after 7 years 300,000 Operating losses before commercial production 400,000 The cost of the machine isGroup of answer choices P5,200,000 P4,980,000 P4,900,000 P4,200,000

Extra Corporation is installing a new machine at its production facility. It has incurred these costs: Purchase price (including input tax of P300,000) P2,800,000 Initial delivery and handling costs...

Extra Corporation is installing a new machine at its production facility. It has incurred these costs:

Purchase price (including input tax of P300,000)	P2,800,000
Initial delivery and handling costs	200,000
Costs of site preparation	600,000
Consultants used for advice on the acquisition of the machine	700,000
Installation and assembly costs	500,000
Costs of testing	100,000
Costs of training employees on how to use the machine	80,000
Estimated dismantling costs to be incurred after 7 years	300,000
Operating losses before commercial production	400,000

The cost of the machine is

Group of answer choices

P5,200,000

P4,980,000

P4,900,000

P4,200,000

Jun 10, 2022