X Ltd bought a new printing machine. The machine cost £160,000. The installation costs were £10,000 and the employees received a training course on how to use the machine (cost £4,000). Before using the machine for normal day-to-day activities the installers undertook a test to ensure the machine worked, this test utilised paper and ink worth £2,000.
At what value will the machine be included in the statement of financial position?

Question

Quizplus · Accepted Answer

The machine will be included at its cost, which includes the purchase price (£160,000), installation costs (£10,000), training costs (£4,000), and testing costs (£2,000), totaling £176,000.

X Ltd Bought a New Printing Machine