Majikstan Enterprises has equipment on its books that it acquired at the start of 2009 . The equipment is being depreciated in straight-line fashion over a 10-year period and has no salvage value. The current cost of this equipment at the end of 2010 was MJR8,000,000,000.

During 2011 , the specific price index for equipment increased from 100 to 137.5. General price-level index information for the period was as follows:

12/31/10 30,000 Average 32,900 12/31/11 36,000 Required: What was the change in Majikstan’s net monetary asset or liability position?

Required: Using this information, calculate the increse in the current cost of Majikstan Enterprise’s equipment, net of inflation.