Question Completion Status: On 1 July 2019. Properplant Ltd acquired an automated bottling plant from an overseas supplier to assist in manufacturing an innovative new health drink. The purchase costs were $500.000, import duties and taxes $70.000, transportation expenses were $5,000, and the installation costs were $25,000. The transportation and installation costs were paid on receipt of the machine and an agreement with the supplier was reached to pay the remaining balance within 120 days of receiving the machine. The company incurred costs of 55.000 for routine maintenance and servicing of the plant within 90 days of operation. The fair value of the plant (including installation) was $650,000 Required: 1. Calculate the initial purchase price of the property, plant and equipment (automated bottling plant) and show your workings (include references to the accounting standards). (3 marks) 2. Prepare general journal entries to record the initial purchase of property, plant and equipment using o cost model (3 marks) 0 Revaluation model (assume revaluation performed immediately after machine is installed). (4 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+Ff0 (Mac). BIU . Paragraph Arial 14px 6 c = = = = = = = X, 8 3 | 111 IX Q . 2 . + vr 2 FR # E2 E3 > 0