WashamotoLtd took delivery of a microcomputer and printer on 1 July 20X6, the beginning of

its financial year. The list price ofthe equipment was sh4,999 but WashamotoLtd was ableto

negotiate a price of sh4,000 with the supplier. However, the supplier charged an additional

sh340 to install and test theequipment. The supplier offered a 5% discount if WashamotoLtd

paid for theequipment and the additional installationcosts within sevendays. Washamoto Ltd

was able to take advantage of this additional discount. The installation of special electrical

wiring for the computer cost sh110. After initial testing certain modifications costing sh199

proved necessary. Staff weresent on special training courses to operate the microcomputer and

this cost sh 990. Washamoto Ltd insured the machine against fire and theft at a cost of sh 49 per

annum. A maintenance agreement was entered into with Sonoma plc. Under this agreement

Sonoma plc. Promised to provide 24 hour breakdown cover forone year. The cost ofthe

maintenance agreement was sh350.

Required:

Calculate the acquisition cost of the microcomputer toWashamoto Ltd