Reference no: EM132656231

Problem 1: X purchased machinery for $50,000 from a company based in Australia. X also paid $4,000 in customs duty and $2,000 to install the machinery in the factory. X incurred another $3,000 to train staff on using the machinery.

X should record the machinery at:

a) $54,000

b) $56,000

c) $59,000

d) None of the above

Problem 2:  X Ltd purchases machinery for $100 000 from a company based in Australia. X Ltd also paid $5000 in customs duty and $300o to install the machinery in the factory. X Ltd incurred another $2000 because the machinery was damaged during the installation. X Ltd should record the machinery at:

a) $110 000

b) $108 000

c) $105 000

d) None of the above