ABC has recently purchased an air-conditioning unit from HM Air Conditioning Ltd. The details of the purchase are given below: Rs

Price List 480,000 Trade Discount 12.5%

Directly attributable costs:

Transport and handling costs 5,500

Estimated pre-usage test 25,000

Maintenance contract for 5 yrs 5,000

Site Preparation cost:

Electric cable installation 28,000 Steel Reinforcement costs 9,000

Own Labour and material costs 15,000

ABC paid for the plant earlier than the due date and obtained a discount of 5%. The Useful Economic Life of the asset is 8 years at the end which the company will have to incur compulsory cost of Rs 20,000 to dismantle the plant and Rs 6,000 to restore the building to its original condition. There was an error in the specification of the cable and the installation had to be rectified at a cost of Rs 12,000 which is included in the above figure of Rs 28,000

Calculate the amount at which the initial cost of the plant should be recognized?