Accounting QUESTION 129 Omega Ltd. contracted with a supplier to purchase machinery which...
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Accounting
Accounting
QUESTION 129 Omega Ltd. contracted with a supplier to purchase machinery which is to be installed in its one department in three months' time. Special foundations were required for the machinery which were to be prepared within this supply lead time. The cost of the site preparation and laying foundations were Rs.1,40,000. These activities were supervised by a technician during the entire period, who is employed for this purpose at Rs.45,000 per month. The machine was purchased at Rs.1,58,00,000 and Rs.50,000 transportation charges were incurred to bring the machine to the factory site. An Architect was appointed at a fee of Rs.30,000 to supervise machinery installation at the factory site. You are required to ascertain the amount at which the Machinery should be capitalized under AS 10
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