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Bubble ( Pty ) Ltd purchased new equipment to replace equipment that it has used for five years. The company paid a purchase price of
Bubble Pty Ltd purchased new equipment to replace equipment that it has used for five years. The company paid a purchase price of brokerage fees of legal fees of and freight and insurance in transit of R In addition, the company paid R to remove old equipment and R to install new equipment. Calculate the cost of new equipment for Bubble Pty Ltd and process the journal entry to record the purchase of the equipment paying R in cash.
NB: Ignore value added tax VAT
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