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CalculationBeginnerPublished

Question · Purchase price

An entity imports a machine with a list price of 100,000. The supplier grants a trade discount of 5 % on the list price. The entity pays non-refundable import duties of 4,000 and VAT of 19,000, which it fully recovers from the tax authorities. What purchase price should it include in the cost of the machine?

List price
100,000
Trade discount
5 %
Non-refundable import duties
4,000
Recoverable VAT
19,000
Your answer

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