Question 9 SH Bhd specialises in the production of high-quality medical tools and small appliances and operates in Tasek Industrial Park. Due to the increasing demand for healthcare facilities and appliances, the company receives high demand for the medical appliances. In order to meet the increasing demand, the company purchased a specialised equipment on 21 May 2017 Detais of the cosi incurred are tos follows \begin{tabular}{lr} & RM \\ Purchass prien & 2400.000 \\ Import dury & 25,200 \\ Engineet lees & 12,900 \\ Pre-preduction testing & 9.801 \\ Sh pona snd traneportation ces: & 11,900 \end{tabular} Enoki Bhd received (a trade discount of \( 5 \% \) from the purchase price.) The specialised equipment has an estimated useful life of ten years with no residual value and to be depreciated on a straight-line method, monthly basis. The company closes its accounts on 31 December each year Compute the initial cost of the specialised equipment.
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The trade discount is 5% of the purchase price, which is RM2,400,000. Trade discount = 5% of RM2,400,000 = 0.05 * RM2,400,000 = RM120,000 Show more…
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