Problem A 1. Josiah Co. acquired a new machine. Details of the acquisition are as follows: 2. Purchase price including VAT 1,568,000 3. Cost of water device to keep machine cool 8,000 4. Cost of the safety rail and platform surrounding machine 12,000 5. Installation cost, including site preparation and assembling 20,000 6. Fees paid to consultants for advice on acquisition of the 7. Machinery 10,000 8. Repair cost of the machine damaged while in the process 9. Of installation 5,000 10. Loss on premature retirement old machine 18,000 11. Other nonrefundable sales tax 13,000 12. Cost of training for personnel who will use the machine 25,000 13. Cost of removing old machine 10,000

CASE NO. 1: Assume that Josiah Co. is a VAT registered entity, determine the amount of cost of the Machinery to be capitalized. CASE NO. 2: Assume that Josiah Co. is non-VAT registered entity, determine the amount of cost of the machinery to be capitalized.