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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 R300000, brokerage fees of R6000, legal fees of R7000, and freight and insurance in transit of R9000. In addition, the company paid R5500 to remove old equipment and R3000 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 50,000 in cash.
NB: Ignore value added tax (VAT)
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