Identify the cost (to be capitalised) of the following items related to acquisition of PPE:

(a) Selma Ltd paid £480,000 for a property, spent £15,000 on demolishing a dilapidated building on it and £5,500 on clearing the site. £5,400 was paid as legal expenses related to the transfer of title. £1,900 was realised on selling the bricks, timber and material salvaged from demolition.

(b) For constructing its office premises on the property in (a) above, Selma Ltd paid £3,500,000 to the contractor, £500,000 to the architect, £1,500 for planning permission and £2,500 as legal expenses. £50,000 of the architect’s fee was for a design that was discarded when the original design was altered by Selma Ltd.

(c) A cattle ranch paid £12,000 for a used heavy goods lorry and £4,000 to fit a larger body for transporting cattle and a further £3,000 to make the vehicle roadworthy. In addition, insurance cost and road tax for the year amounted to £340 and £250, respectively.

(d) A steel rolling mill paid £180,000 for a machine, £1,500 for delivery to the factory and £4,500 for having it installed. Start-up costs, including material wastage during the start-up period, amounted to £3,000.