(i) Identify and compute the cost of the machine to be recognised. Explain your reasoning. (ii) Journalise the transactions. Assume the above payments are paid in cash.

Question 2 (a) On 1 May 2020, Ron Trading purchased a new machine. The following payments relate to the machine. List price Purchase discount Transportation cost Repair of damage parts incurred in transporting the machine Fees paid to test the machine before use Fees paid to the installer to install the machine Machine operator's salary for the first month of operation Maintenance costs for the first month of operation $21,500 2.000 300 1,000 500 800 3,000 300 (1) Identify and compute the cost of the machine to be recognised. Explain your reasoning. (8 marks) (11) Journalise the transactions. Assume the above payments are paid in cash