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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › purchase of new machinery
A company purchases a new machine for $60,000. it costs $6,000 to install and training costs for staff are $1,000. The machine has also to be tested first and the material costs for this test amount to $500. What is the cost of the machine in the SOFP?
The answer is 66500$
(60,000 + 6,000 + 500). Training costs are not to be included in the calculation because they fall under revenue expenditure, while the others fall under capital expenditure.
many thanks for that. I appreciate the help.
Chimene is correct (even though she should not be answering on this forum 🙂 )
Very sorry Sir
No problem 🙂