The following costs were incurred to construct the manufacturing plant:

Note Rand Raw materials $15000000$ Labour costs

$1000000$ Provision for dismantling costs $2?$ Machine $3?$ Supportive base $4250000$

Note $1$ Raw materials The raw material purchases are made up of R$3500000$ purchased from external suppliers and R$1500000$ of raw materials transferred from one of Blue Crane Ltd$$s other manufacturing divisions. The R$1500000$ includes an inter$-$divisional markup of $15\%$ on the cost.Note $2$ Provision for dismantling costs

The manufacturing plant structure is estimated to have a useful life of $20$ years and no residual value. At the end of its $20-$year useful life, the structure will be dismantled and a provision for this cost must be recognised. The expected future dismantling costs after $20$ years amounts to R$1300000.$ The market$-$related interest rate applicable for similar transactions is considered to be $6\%$ per annum.

Note $3$ Machine The machine used in the potato chip manufacturing division is of a specialised nature and therefore had to be imported from a supplier in the United States.

The machine, with a purchase price of $$100000,$ was ordered on $15$ May $2024$ and was shipped to South Africa on $20$ May $2024.$ All risks and rewards in relation to the machine were passed to Blue Crane Ltd on the shipping date. The spot rates applicable were $$1$:R$18,72$ and $$1$:R$18,75$ on $15$ May $2024$ and $20$ May $2024$ respectively. The $$100000$ was paid in cash to the supplier on $20$ May $2024.$

Blue Crane Ltd incurred the following additional costs, in cash, with regard to the purchase of the machine:

Rand $31$ May $2024$: Transport cost from the harbour to Blue Crane Ltd premises $9500025$ June $2024$: Installation of the machine on the supportive base $500005$ July $2024$: Training staff on the operation of the machine $15000$

The machine has a useful life of $10$ years and a residual value of R$220000.$

Note $4$ Supportive base Due to the specialised nature of the machine that will be used in the potato chip manufacturing division, Blue Crane Ltd was required to lay a supportive base for the machine to be installed on to ensure its proper function The supportive base was laid by a third party at a total cost of R$250000.$ The R$250000$ is payable in $18$ months, which is not considered normal credit terms. The market$-$related interest rate applicable to similar transactions is considered as $8\%$ per annum.

The supportive base has a useful life of $5$ years and no residual value.

Additional information:

$$ The manufacturing plant, including all components thereof, and the machine, in$-$cluding all components thereof, was available for use and began operating on $1$ August $2024.$

$$ Depreciation on all components is calculated using the straight$-$line basis$\mathrm{.}1\mathrm{.}1$ Prepare extracts from the statement of financial position as at $31$ December $2024$ for Blue Crane Ltd showing all the balances relating to the manufacturing plant structure, refer to notes $1$ and $2.$

Comparative figures are required and notes to the financial statements are not required.

$(20$ marks$)$