Question $1$

Existing equipment V$\mathrm{.}1$ has a cost of RM $700000,$ accumulated depreciation at beginning of the year of RM $200000$ & depreciation for the current year is RM $140000.$

Existing equipment V$\mathrm{.}1$ was used to construct another piece of equipment for $3$ months during the current year.

Construction costs for the new equipment V$\mathrm{.}2$ amounted to RM $30000$ of labour and materials.

Required:

Calculate cost of the new equipment: