2. Michael Adams Limited purchased new equipment and incurred the

following costs at the end of the first year of acquisition:

$

Purchase price 12 500 000

Routine servicing 25 000

Shipping and delivery 1 050 000

Non-Refundable taxes 200 000

Major replacement parts 500 000

Import duties 1 250 000

E Based on IAS 16 Property, Plant and Equipment, how much should Lebron James

recognise in his Statement of Financial Position, as the cost of the asset? (6 marks)