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The components of the cost of a major item of equipment are given below: $ 780,000 Purchase price 117,000 Import duties 78,000 VAT (refundable) 30,000
The components of the cost of a major item of equipment are given below: $ 780,000 Purchase price 117,000 Import duties 78,000 VAT (refundable) 30,000 Site preparation 28,000 Installation 10,000 Testing Initial losses before asset reaches planned performance 50,000 40.000 Discounted cost of dismantling and removal at end of useful life 1,133,000 Required: Calculate the cost that will be included in tangible noncurrent asset additions. (6 marks)
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