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QUESTION 3 ( 1 5 Marks ) Bubble ( Pty ) Ltd purchased new equipment to replace equipment that it has used for five years.
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Bubble Pty Ltd purchased new equipment to replace equipment that it has used for five years. The company paid a purchase price of R brokerage fees of R legal fees of R and freight and insurance in transit of R In addition, the company paid R to remove old equipment and R to install new equipment. Calculate the cost of new equipment for Bubble Pty Ltd and process the journal entry to record the purchase of the equipment paying R in cash.
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