On February 1, 2021, Niki Corp. purchased for cash worth P56,700,000 certain items of property,...
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On February 1, 2021, Niki Corp. purchased for cash worth P56,700,000 certain items of property, plant, and equipment of Zef Corp., which had discontinued its operations. The following are the fair value of the assets acquired:
• Land- P10,500,000
• Building- P31,500,000
• Machinery and equipment- P21,000,000
Â
Niki expended the following amounts in cash between February 1 and March 1, the date when the entity first occupied the building:
• Special assessment by the city on land- P540,000
• Major repairs to the building before occupancy- P3,150,000
• Construction of bases for machinery and equipment acquired- P4,050,000
• Driveways and parking lots- P3,660,000
• Remodeling of office space in the building, including new partitions and walls- P4,830,000
On March 1, Niki purchased a unit of machinery having a list price of P7,800,000. The terms of the purchase were 2/10, n/30. The payment was made on March 15. Freight paid by Niki on the machinery was P315,000.Â
How much is the total cost of machinery and equipment?
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