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Zebra publishing is a VAT registered vendor. They imported a large scale printing equipment from Japan at a purchase price of N$138 000 (VAT incl.).
Zebra publishing is a VAT registered vendor. They imported a large scale printing equipment from Japan at a purchase price of N$138 000 (VAT incl.). The equipment was shipped through Walvis bay, incurring shipping costs of N$20000 (VAT excl.) and non-refundable import duties of N$10000 (VAT excl.). Other related costs incurred were as follows (All VAT exclusive):
- Installation cost of N$15 464, including a service discount received of 3%
- Warehouse clearing and other cost of preparing the site of equipment N$5 000
- Administrative and general overhead costs N$15000;
- Cost of testing the equipment N$10000;
- Proceeds from printing pamphlets for testing N$3 000
- Advertisement for commencement of bulk printing services N$10 000
- Present value of total cost to dismantle and remove the equipment at the end of its life N$15 000
Required:
Calculate and indicate the cost of equipment at initial recognition according to IAS 16.
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