Magdaraog, Mari Cris

BSA 302
5 quiz 1
I.
1.A
2.D
3.C
4.A
5.B
6.C
7.A
8.B
9.C
10.D

II.
Requirement 1: Compute for the cost of land.
Answer:
Purchase price 4,000,000
Add:
Legal for purchase contract 150,000
and recording ownership
Title guarantee insurance 50,000
Cost of land 4,200,000

Requirement 2: Compute for the cost of machine.

Answer:
Cash paid for machine, including VAT 896,000
Add:
Cost of transportation 30,000
Cost of installation 50,000
Cost of testing machine 40,000
Cost of water device to keep 80,000
machine cool
Cost of safety rails and platform 60,000
surrounding machine
Estimated dismantling cost to be 65,000
incurred as required contract
Cost of machine 1,221,000