Kirkwood Limited intends replacing plant and equipment that has New plant and equipment will be purchased at a cost of R1 400000 incurred on this plant and equipment for transport and installation. Marked out of 1 . The old equipment has a book value of Ro but can be sold for R40 000. Removal costs of R5 000 will have to be paid for the old machine. Kirkwood Limited's taxation rate is 28%. The total cost of the new asset is: A. (R1 400000) B. (R1 600000) C. (R1 560 000) D. (R1 440 000)