Save Answer UESTION 1 25 points a. Vidava Chemical Ltd. purchased a machinery from Madness Machine Manufacturing Ltd. (MMM Ltd.) on 30.9.2009. Quoted price was KES. 16, 200,000. MMM Ltd. offers 1% trade discount Sales tax on quoted price is 5% Vidava Chemical Ltd spent KES 42,000 for transportation and KES 30, 000 for architect's fees. They borrowed money from KCB KES. 15,000,000 for acquisition of the assets @ 20% p.a. Also, they spent KES. 18,000 for material in relation to trial run. Wages and overheads incurred during trial run were KES 12, 000 and KES 8, 000 respectively. The machinery was ready for use on 15.11.2009. It was put to use on 15.4.2010. EQUIRED i. The original cost. (10mks) ii. Also suggest the accounting treatment for the cost incurred in the interval between the date the machine was ready for commercial production and the date at which commercial production actually begins. (5mks)