In the year to 31 December 20X9 Amy bought a new machine and made the following payments in relation to it:

Cost per suppliers list 12,000(Dr)

Less: Agreed Trade Discount (1,000) (Dr) 11,000(CR)

Delivery Charge 100 (CR)

Fitting Charge 200(cr)

Maintenance Contract 300(cr)

Additional component to increase capacity 400(cr)

Replacement spare parts 250(cr)

Required:

i.State and justify the cost figure which should be used for the basis for depreciation

ii.Write out the journal to record the purchase of the above on the assumption that the customer was given 30 days credit