Sandhill Corp., a public company located in Manitoba, both purchases and constructs various pieces of machinery and equipment that it uses in its operations. The following items are for machinery that was purchased and a piece of equipment that was constructed during the 2020 fiscal year:

Purchase
Cash paid for equipment, including sales tax of $8,050,and recoverable GST of $5,750		$128,800
Freight and insurance cost while in transit		2,430
Cost of moving equipment into place at factory		3,200
Wage cost for technicians to test equipment Materials cost for testing		3,900 470
Insurance premium paid during first year of operation on this equipment		1,900
Special plumbing fixtures required for new equipment		8,020
Repair cost incurred in first year of operations related to this equipment		1,600
Cash received from provincial government as incentive to purchase machinery		28,000
Construction
Material and purchased parts (gross cost $197,000; failed to take 4% cash discount)		$197,000
Imputed interest on funds used during construction (stock financing)		14,300
Labor costs		194,000
Allocated overhead costs (fixed-$21,200; variable-$31,600)		52,800
Profit on self-construction		32,500
Cost of installing equipment		5,100

Calculate the cost of the machinery and the cost of the equipment. (a) Cost of the machinery enter a dollar amount 113,070(correct) (b) Cost of the equipment enter a dollar amount 419,820(correct)

Explanation:128800-5750+2430+3200+3900+470+8020-28000=113070

(197000*0.96)+194000+31600(variable ONLY)+5100=419820

Other questions don't mention the variable only is inputed for the cost of equipment. Please clarify why as this is what works. Also please explain why they take 4% off when they failed to take the discount. Thanks.