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Section 1 Q43: Asks what should be the cost of the machine in the company’s statement of financial position?
The Answer they have given includes the cost of specific training on the machine of $1000.
In Chapter 3 of BA3 Fundamentals of Financial Accounting, page 227 it clearly states that training costs are excluded from the cost of a non-current asset.
Can anyone confirm / clarify? I am confused,
This appears to be an error. I know it’s a late reply but just in case anyone passing by sees this with the same question.
They have since amended the exam kit book so the answer is $43, 000. (Cost of machine, installation and testing).
However, excise duty and other legal fees pertaining to the purchase of the machine(fixed asset) will be capitalised with the asset price, right?