Broadoak has recently purchased an item of plant from Plantco, the details of this are:

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Basic list price of plant240,000

Trade discount applicable to Broadoak12.5% on list price

Ancillarycosts:

Shipping and handlingcosts2,750

Estimated pre-production testing12,500

Maintenance contract for three years24,000

Site preparationcosts:

electrical cable installation14,000

concrete reinforcement4,500

own labourcosts7,500

26,000

Broadoak paid for the plant (excluding the ancillarycosts) within four weeks of order, thereby obtaining an early settlement discount of 3%.

Broadoak had incorrectly specified the power loading of the original electrical cable to be installed by the contractor. Thecostof correcting this error of $6,000 is included in the above figure of $14,000. The plant is expected to last for 10 years. At the end of this period there will be compulsorycosts of $15,000 to dismantle the plant and $3,000 to restore the site to its original use condition.

Required

Calculate the amount at which the plant will be measured atrecognition.(Ignore discounting.