On 1 July 2019, LongWaves Ltd purchased an item of machinery for $198,000. The machinery has a useful life of 4 years and a residual value of $30,000. The machinery is to be depreciated on a straight-line basis. The following information relates to the purchase of the machinery:

Cost of Machinery

Notes:

Cash paid for machinery (includes GST $18,000) $198,000

Costs of transporting machinery $4,000

costs of installation by expert fitter $ 3,500

Labour costs of testing machinery $2,500

General insurance costs for 20192020 $4,500

Costs of training salesmen to market the new product made by this machinery $2,500