During 2017, Tiny Limited decided to update and network the company's computer equipment. The details are as follows:

With respect to the computer hardware, Tiny Limited negotiated a 10% trade discount on the list price and took advantage of a 5% early settlement discount for payment within 30 days. Requirement:

Calculate the initial cost at which the computer equipment should be included in Tiny Limited's 2017 financial statements.

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List price of computer hardware Additional costs: Shipping and handling Four-year on-site maintenance contract One month testing prior to going live Cabling and wiring Own staff costs related to preparation of offices prior to installation 500,000 20,000 80,000 10,000 30,000 16,000